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The use of battery energy storage in power systems is increasing. But while approximately 192GW of solar and 75GW of wind were installed globally in 2022, only 16GW/35GWh (gigawatt hours) of new storage systems were deployed.To meet our Net Zero ambitions of 2050, annual additions of grid-scale battery energy storage globally must rise to an average of about 120 GW annually between now and 2030.Regulations and policies in developing countries do not incentivize the adoption of battery energy storage systems, but a new framework developed by the World Bank’s Energy Sector Management Assistance Program (ESMAP) could unlock knowledge and capital.Across the globe, power systems are experiencing a period of unprecedented change. Low-cost renewable electricity is spreading and there is a growing urgency to boost power system resilience and enhance digitalization.This requires stockpiling renewable energy on a massive scale, notably in developing countries, which makes energy storage fundamental.Against the backdrop of swift and significant cost reductions, the use of battery energy storage in power systems is increasing. Not that energy storage is a new phenomenon: pumped hydro-storage has seen widespread deployment for decades. There is, however, no doubt we are entering a new phase full of potential and opportunities.In 2022, approximately 192GW (gigawatts) of solar and 75GW of wind were installed globally. However, only 16GW/35GWh (gigawatt hours) of new storage systems were deployed. A recent International Energy Agency analysis finds that although battery energy storage systems have seen strong growth in recent years, grid-scale storage capacity still needs to be scaled up to reach Net Zero Emissions by 2050.While battery electricity is no silver bullet that can solve the myriad challenges facing 21st-century power systems, it can substantially contribute to cleaner and stronger power networks. Importantly, it is particularly well-suited to the needs of developing countries where power grids are often weak.Caption: How much of our primary energy comes from renewables? Image: Our World in DataChallenges for developing countries abound, including poor security of supply, insufficient generation capacity, underdeveloped or non-existent grid infrastructure, a lack of adequate monitoring and control equipment, and skilled human resources.In this context, energy storage can help enhance reliability and is, therefore crucial in the transition from thermal to hybrid projects. It allows excess electricity generated from variable renewable energy (VRE), such as solar and wind, to be stored for use during periods of high demand or low sunlight, increasing reliability and availability. A hybrid project – combining VRE with a battery energy storage system – helps create a more sustainable and stable energy system by reducing reliance on fossil fuels.Yet, current regulations and policies in developing countries do not incentivize the adoption of battery energy storage systems, making it difficult for hybrid projects to compete with traditional energy sources. Revenue streams in these markets are often limited, making it challenging to justify their high upfront costs. Several business models can enable the monetization of hybrid projects that incorporate battery energy storage systems.Caption: The (forecast) distribution of global electricity generation, by technology in 2021 and 2027The (forecast) distribution of global electricity generation, by technology in 2021 and 2027The (forecast) distribution of global electricity generation, by technology in 2021 and 2027 Image: StatistaThe World Bank, through its Energy Sector Management Assistance Program (ESMAP), is actively working on mobilizing concessional funding for battery energy storage projects in developing countries. So far, the Bank has mobilized about $850 million in concessional financing from several climate funds and has 5.5GWh in battery energy storage capacity commitments in active projects, including 3.7GWh of identified capacity in the pipeline.ESMAP supports developing countries deploying energy storage by providing access to concessional finance and technical assistance and addressing critical knowledge gaps through an international Energy Storage Partnership (ESP). Hosted by ESMAP, the partnership looks at all forms of energy storage, including but not limited to batteries. With its 50 partners, the ESP is developing a knowledge base in energy storage solutions tailored to the needs of developing countries.Despite the increasing popularity of hybrid projects across continents, there remains a gap in the market for a comprehensive framework and guide for power purchase agreement (PPA) structures in the sector. A PPA refers to a long-term contract between an electricity producer and a client, commonly a utility, government entity, or company. Within this agreement, the buyer of electricity acquires energy at a predetermined price that has been previously discussed and agreed upon. The lack of such a PPA framework makes it difficult for organizations to make informed decisions about the best business models for their needs and make accurate financial calculations.The ESP has developed a hybrid power purchase agreement framework that aims to monetize the benefits of energy storage to ensure a sustainable payment mechanism. The framework helps incorporate battery energy storage systems into renewable energy auctions where governments issue a call for tenders to install a certain capacity of renewable energy-based electricity. It seeks to assist countries in implementing hybrid renewable energy projects, which comprise of solar plus battery energy storage systems as integral parts of their sustainable renewable energy programmes.The goal is to unlock private capital and reduce dependence on public finances, helping practitioners make well-informed decisions about the business models that best meet their needs. The proposed framework can be further developed and enhanced in the future, considering other emerging business models and their variations and more in-depth knowledge and best practices adapted from different models across the globe.Caption: How to plan a hybrid project Image: World Bank.Transforming the dream into realityMaking energy storage systems mainstream in the developing world will be a game changer. Deploying battery energy storage systems will provide more comprehensive access to electricity while enabling much greater use of renewable energy, ultimately helping the world meet its Net Zero decarbonization targets.International organizations and development institutions are leading the way forward to enable this decarbonization, but collaboration is critical. The World Bank has recently partnered with the Long Duration Energy Storage (LDES) Council and the Global Energy Alliance for People and Planet (GEAPP) to finance battery energy storage projects in developing countries further and take a step towards the energy transition.The deployment of energy storage systems in developing regions holds the potential to revolutionize the energy landscape, but combined efforts between different institutions is pivotal in driving this essential shift towards sustainable energy solutions.Learn more about how the ESP supports developing nations in their energy transition journey.Originally published by World Economic Forum.

ChallengeAccording to the Intergovernmental Panel on Climate Change (IPCC), the energy sector is the largest contributor to global greenhouse gas emissions. Accelerating the deployment of renewables and decarbonizing the energy sector can lead to significant emissions reduction. However, to scale up deployment for expanding access, bolstering energy security, and keeping global temperature rise below 1.5 °C, as set out in the Paris Agreement, investments in renewables must triple to $1.3 trillion annually by 2030, according to the International Energy Agency (IEA). In addition, increasing the share of renewable energy sources in global electricity production is currently hindered by inadequate public funding and significant disparities among countries and regions. Therefore, mobilizing private investments in renewable energy is essential for achieving energy transition and meeting global climate objectives.ApproachESMAP, which focuses on achieving decarbonization across the energy sector in support of international commitments on climate change, manages several renewable energy initiatives, including SRMI. SRMI aims to support governments in developing and implementing sustainable renewable energy programs by creating an enabling environment for privately led renewable energy projects. By combining technical assistance, public investments, and risk mitigation instruments, SRMI provides a comprehensive framework, which includes a series of important steps to mitigate the critical risks perceived by the private sector while reducing the risks for the public sector.World Bank’s Climate Change Action Plan (CCAP) for 2021-2025 aims to integrate climate and development to maximize the climate impact of its projects. The Energy Sector Management Assistance Program’s (ESMAP) Sustainable Renewables Risk Mitigation Initiative (SRMI) uses climate finance for mitigation activities that reduce emissions and increase climate resilience in the energy sector. SRMI supports countries accelerate the deployment of renewables and decarbonize the power sector with (i) technical assistance and (ii) private investments and climate finance mobilization. SRMI has supported more than 60 countries, which led to enabling 4.4 gigawatts of new renewable energy projects in 14 countries and 2 regional projects, catalyzing over $5.5 billion in private capital, securing $4 billion in public infrastructure funding and guarantees, and mobilizing $1.2 billion in climate finance.Read the full brief

About the event6 September 2023 I 9:00-10:00 EST I Online Offshore wind is critical to achieving global decarbonization goals and net zero emissions to avoid the worst impacts of climate change. It can provide large-scale, clean, reliable electricity generation with the potential to stimulate valuable economic benefits and industrial development. Estimates suggest that 2,000 GW of offshore wind will be needed by 2050 to deliver the energy transition and limit global temperature rise to well below 1.5 degrees Celsius. With developing countries holding around one quarter of the world’s technical offshore wind potential, this new capacity will need to be delivered across both established and emerging markets.Although costs have been decreasing dramatically for offshore wind over the past decade, the first projects in any new market will come at a cost premium as developers, investors, and lenders factor in a wide range of uncertainties, higher costs, and risks. This can be a major roadblock for developing countries who want to tap into their offshore wind potential but need to limit the initial higher costs to reduce the impact on consumers. Consequently, policymakers may find it difficult to commit to offshore wind and thereby delaying the deployment of capacity and its potential to contribute to decarbonization.A new report by the World Bank Group’s Offshore Wind Development Program, jointly led by the Energy Sector Management Assistance Program (ESMAP) and the International Finance Corporation (IFC), addresses this financing gap through analysis of a key solution: concessional climate finance. According to the report, concessional finance and a coordinated public and private sector response together can overcome the initial high-cost barrier for offshore wind in emerging markets, which presents a high-impact opportunity to enable emerging market governments to commit to offshore wind and accelerate global decarbonization efforts.Re-watch the launch event of the new report “The role of concessional climate financing in accelerating the deployment of offshore wind in emerging markets”, to learn more about concessional financing, how it can reduce costs of the first offshore wind projects in emerging markets, what level of financing will be needed to catalyze these markets, how the public and private sector can work together, and what this means for the global offshore wind sector and transition to net zero.   ProgramEvent hosted by: Gabriela Alizondo Azuela, Practice Manager, ESMAPOpening RemarksDemetrios Papathanasiou, Global Director - Energy and Extractives, World BankJamie Fergusson, Global Director, Climate Business, IFCConcessional Financing for Offshore Wind: Top 5 Report Takeaways You Need to KnowSean Whittaker (IFC) and Mark Leybourne (ESMAP), co-leads of the World Bank's Offshore Wind Development ProgramRoundtable DiscussionHanne Jersild, Chief Advisor, Ministry of Climate, Energy and Utilities (Denmark)Mitul Mistry, Team Manager - Multilateral Programmes, Department for Energy Security and Net Zero (UK)Rebecca Williams, Global Head of Offshore Wind, GWECClosing RemarksDiep Nguyen van-Houtte, Senior Manager, Innovation and Business Development, IFCFor any questions about the report or launch event, please contact Mark Leybourne (mleybourne@worldbank.org) and Alyssa Pek (apek@worldbank.org).

  About the RoadmapThe Government of Sri Lanka has set a goal to have 70% of its electricity generated by renewable energy sources by 2030, and achieve carbon neutrality in electricity generation by 2050.  A currently untapped resource for the country that can help achieve these goals is offshore wind. Sri Lanka has significant potential for offshore wind, and there is already private sector interest in developing projects. The additional clean energy capacity that could be generated by offshore wind can not only support the country’s transition to net zero carbon, but also increase security of supply and help reduce the economic burden from fossil fuel imports. To fully assess the country’s offshore wind potential, the Government of Sri Lanka commissioned a roadmap published by the World Bank Group under its Offshore Wind Development Program. The Offshore Wind Roadmap for Sri Lanka, funded by the World Bank Energy Sector Management Assistance Program (ESMAP) and PROBLUE, provides a full overview of potential low and high growth scenarios for offshore wind development in the country, as well as a series of recommendations for the government to take in order to realize these scenarios. The objective of this roadmap is to provide strategic analysis and advice on the role that offshore wind can play in Sri Lanka’s future energy mix, analysis on the key opportunities and challenges, and recommendations on next steps in terms of policy formulation, planning, and developing bankable projects. This report is comprised of main body (chapters 2 to 6), which summarize the key findings and conclusions of this report, as well as presenting the roadmap. Chapters 7 to 15 present more detailed analysis of the themes of this report. Watch the official roadmap launch event

About the eventThe Government of Sri Lanka has set a goal to have 70% of its electricity generated by renewable energy sources by 2030, and achieve carbon neutrality in electricity generation by 2050.  A currently untapped resource for the country that can help achieve these goals is offshore wind.Sri Lanka has significant potential for offshore wind, and there is already private sector interest in developing projects. The additional clean energy capacity that could be generated by offshore wind can not only support the country’s transition to net zero carbon, but also increase security of supply and help reduce the economic burden from fossil fuel imports.To fully assess the country’s offshore wind potential, the Government of Sri Lanka commissioned a roadmap published by the World Bank Group under its Offshore Wind Development Program. The Offshore Wind Roadmap for Sri Lanka, funded by the World Bank Energy Sector Management Assistance Program (ESMAP) and PROBLUE, provides a full overview of potential low and high growth scenarios for offshore wind development in the country, as well as a series of recommendations for the government to take in order to realize these scenarios.Watch the official launch event for the Offshore Wind Roadmap for Sri Lanka to learn more about the key findings of the roadmap, and hear from high-level representatives of the Government of Sri Lanka, Embassy of the United Kingdom, WBG and IFC on what’s next for tapping into Sri Lanka’s offshore wind potential. ProgramOpening Remarks*Mr. M. P. D. U. K. Mapa Patharina, Secretary of Power & Energy Sri LankaAsela Dissanayake, Acting Country Manager – Sri Lanka, World BankAlejandro S Alvarez de la Campa, Country Manager – Sri Lanka, IFC A word of support from the UK*Andrew Patrick, British High Commissioner to Sri Lanka Key Takeaways from the roadmapMark Leybourne, co-lead of World Bank Offshore Wind Development ProgramMinisterial RemarksHon. Kanchana Wijesekera, Minister of Power & Energy Q&AModerated by Jari Väyrynen, Sr. Energy Specialist, World Bank.All speakers above will be available for Q&A, as well as:Martand Shardul, Director, GWEC IndiaErik Mohr, Head of Section, Wind and Renewable Energy, COWI *Not included in event recording above.For any questions regarding the roadmap and the launch event, please contact Alyssa Pek at apek@worldbank.org.

This Women’s Employment in Energy Sector Utilities Toolkit is A "one-stop shop" for advice and resources on how to bolster women's employment in energy utilities. It contains links to free, publicly available tools and resources aimed at addressing the barriers identified in the Stepping Up Women’s STEM Careers reports. The toolkit contains four modules, each thematically focused. The first module addresses setting up a data-driven program and strategy with achievable targets; modules 2-4 focus on overcoming barriers to increased women’s employment according to the stage of a woman’s career.The four modules are:Making the Commitment to Gender EqualityAttracting and Recruiting WomenCreating a Supportive Work EnvironmentAdvancing Women in the Company ACCESS THE TOOLKIT | HOW TO USE THE TOOLKIT

The Future Role of Hydropower in Sub-Saharan AfricaJuly 8-9, 2023 | Munyonyo, UgandaOver 60 participants from 23 countries successfully inspired lively discussions about the future role of hydropower in Sub Saharan Africa with a deep dive into the evolving power systems and how hydropower's unique capabilities contribute towards maintaining balance to enable integration of VRE. #Hydropower #FlexibleHydropowerThe event also shared experience and inspired good discussions on the added value of #TheWorldBank’s engagement in hydropower projects #RusumoFalls and #Mpatamanga. BackgroundESMAP’s Hydropower Development Facility program started as part of the FY21-24 Business Plan to build a pipeline of sustainable hydropower projects in recognition of its critical role in power system balancing, water resource management, climate mitigation and adoption.ESMAP HDF supports clients in developing and managing next generation rehabilitation and greenfield project, increasing understanding of technology that is critical to integrating variable renewable energies (VRE) into the power system, and enhancing knowledge on these topics through developing new knowledge products, and outreach activities.ObjectivesThe objective of the ESMAP’s Hydropower Development Facility event was to share knowledge and experience between mature and emerging markets on flexible hydropower; explore and discuss current and future roles of hydropower in Sub-Saharan Africa; share insights into how the World Bank develops and supports hydropower projects in East and Southern Africa; and (d) explore the future of hydropower in West and Central Africa.The HDF event aided in building capacity with government and technical participants and provide them with the tools and knowledge to move towards realizing their flexible and sustainable hydropower potential and goals.Agenda and PresentationsWelcome and Opening RemarksElin Hallgrimsdottir, Senior Energy Specialist, ESMAP/ World BankMr. Harrison Mutikanga, CEO, Uganda Electricity Generation Company LtdSustainable Hydropower DevelopmentElin Hallgrimsdottir, Senior Energy Specialist, ESMAP/ World Bank (Presentation)Hydropower - the Reliable and Flexible Enabler of the Future Power System in AfricaThe Role of Flexible HydropowerBente Brunes, Senior Energy Consultant, ESMAP/ World Bank (Presentation) The Role of Hydropower in the East African Power PoolJames Wahogo, Secretary General - General Secretariat, East African Power Pool (Presentation)The Role of Hydropower in the Southern African Power PoolStephen Dihwa, Executive Director, Coordination Centre, Southern African Power Pool (Presentation)The Role of Hydropower in the Western African Power Pool Mingdièbe Kanfor-Lare, Technical Project Director, Western African Power Pool (Presentation)Roundtable on the Role of Flexible Hydropower in Evolving Power SystemsModeratorBertrand Mayeur, Senior Energy Specialist, World BankPanelistsBente Brunes, Senior Energy Consultant, ESMAP/World BankJames Wahogo, Secretary General - General Secretariat, East African Power PoolStephen Dihwa, Executive Director, Coordination Centre, Southern African Power PoolMingdièbe Kanfor-Lare, Technical Project Director, Western African Power PoolDr. Ing. Klaus Jorde, International Energy Agency Technology Collaboration Program on HydropowerEast and Southern African Hydropower ProjectsRusumo Falls Regional Hydropower ProjectLaurencia Karimi Njagi, Senior Energy Specialist, World Bank (Presentation)Mpatamanga Hydropower ProjectRikard Liden, Lead Energy Specialist, World Bank (Presentation)World Bank Environmental and Social Framework (ESF) Alphonse Emadak, Senior Environmental Specialist, World Bank (Presentation)Roundtable on the Added Value of World Bank Engagement in Hydropower ProjectsModeratorBertrand Mayeur, Senior Energy Specialist, World BankPanelistsLaurencia Karimi Njagi, Senior Energy Specialist, World BankAlphonse Emadak, Senior Environmental Specialist, World BankRikard Liden, Lead Energy Specialist, World BankSteven Bihinda, Renewable Energy Senior Engineer, Rwanda, Ministry of InfrastructureKhumbolawo Lungu, Principal Energy Officer, Malawi, Department of EnergyWest and Central Africa HydropowerWelcome Remarks and Presentation of World Bank Strategy for West and Central AfricaPravin Karki, Senior Energy Specialist, World Bank (Presentation)Private Company Experience in Nigeria’s Power SectorEngr. Lamu Audu, Managing Director / CEO of Mainstream Energy Solutions Ltd (Presentation)Synergies of Renewable Energy Resources Working Together in a Changing ClimateProf. Dr. Sebastian Sterl, Senior Research Associate on Clean Energy Transitions at WRI Africa (Presentation)Optimizing Hydropower Design to Support Renewables IntegrationDiego Vilanova, Vice President Market Management for Africa at Andritz Hydro GmbH (Presentation)Closing RemarksElin Hallgrimsdottir, Senior Energy Specialist, ESMAP/World BankContact:  Elin Hallgrimsdottir

This is the final report for the support for the development of transition mechanisms for liberalization of the electricity market of Azerbaijan project funded by the World Bank/ESMAP. The objective of the report is to set out recommendations of the Single Buyer Model (SBM) design and provide guidance for its implementation. The government of Azerbaijan (GoA) considers the development of the SBM a critical component for transition to a competitive market, as outlined in the strategy of socioeconomic development for 2022-2026. The goal of the SBM is to improve the efficiency of the electricity sector and support Azerbaijan's ambitions for exporting green energy. The SBM aims to reduce costs in the sector by optimizing the use of power generation sources, leading to greater flexibility in incorporating variable renewable energy (VRE) into the system. This will enable the realization of Azerbaijan's VRE potential, attract investment, and support the country's green energy export goals.

Energy subsidies, which have a long history of use by governments around the world, have been rising in recent years after a brief period of decline. In 2020, low crude oil prices and weak economic conditions due to the COVID-19 (coronavirus) pandemic resulted in record low energy consumption subsidies. But their 2020 total—US$180 billion—was still significant (IEA 2021). Energy consumption subsidies rebounded as demand recovered; prices rose because of increased energy demand amid tight supply conditions; and various crises followed that required increased support to households and firms. In 2022, total global support for the consumption of fossil fuels exceeded US$1 trillion according to the IEA’s latest estimates (IEA 2023). These growing energy subsidies bring with them risk of further distortions across the economy, environmental damage, and significant drain on fiscal resources.  Learn more about ESMAP's Energy Subsidy Reform Facility. 

The Republic of South Sudan is a land-locked country located in East-Central Africa with a population of 11.4 million people. In 2020, the World Bank, in response to South Sudan’s transitional government’s request, set up the Pathways to Electricity Access Expansion in South Sudan project. As part of the initiative, the World Bank commissioned this study, the Off-grid and Mini-grids Market Assessment. The study had four specific objectives, namely: (1) to analyze the demand and supply of modern off-grid technologies; (2) to assess the local financing market for standalone solar PV and mini-grid services; (3) to review the enabling environment and public and donor-led initiatives; and (4) to analyze barriers and opportunities to scale up the standalone solar PV and mini-grid markets.

Nigeria devotes significant funds to subsidise transportation but, unfortunately, this funding serves precisely to discourage the development of e-mobility. The subsidisation of petrol discourages the take-up of alternative vehicles such as electric minibuses, two-wheelers (E2W) and three-wheelers (E3W). Regulations to enact policies will also need to be developed, mostly at federal level, adapting the tax regime and permission framework for importing new and used vehicles, and instating new framework drawing from international experience as for safe storage, recycling and disposal of batteries and e-waste associated with e-vehicles. The objective of the study is to facilitate dialogue on urban and rural clean energy e-mobility strategies that reduce air pollution, greenhouse gas emissions and health and economic impacts of mobility in Nigeria.

This report presents the results of research and analysis on the status and trends of space heating conducted in 2022-23. In the long, cold winters in many parts of the Europe and Central Asia (ECA) region, heating is critical to life and for livelihoods, but it is currently not sustainable. Energy use for space heating has expanded to 24 percent of total regional energy demand today—of which about 72 percent is consumed in the residential sector and the remainder in commercial and public buildings. Fossil fuels—natural gas and coal—have overwhelmingly met this energy need. Compounded by an aging and energy inefficient building stock, the heating sector has generated a significant level of emissions, both locally and globally. Across the region, air pollution, particularly in urban areas, is a serious threat that causes 302,000 deaths and incurs a welfare cost of 7 percent of GDP annually. Annual gross CO2 emissions from ECA heating of buildings are estimated to be about 22 percent of total regional emissions, or 678 MtCO2, of which 75 percent is attributed to the residential sector. In urban areas, most households currently heat their homes with district heating (DH), electricity, and gas boilers, while in rural areas most households rely on firewood or coal stoves and boilers. Addressing the considerable challenges in heating is an urgent imperative for policymakers to ensure heating services are affordable, efficient, and clean which can in turn bring enormous development benefits. The decarbonization pathways in ECA countries to net zero by mid-century are intertwined with sustainable heating.Report is also available in | RUSSIAN