Hydrogen Accelerates Energy Transition in Developing Countries
NOVEMBER 04, 2022
Low-carbon hydrogen is a unique fuel with a high potential to address climate change and development.
- Energy SolutionsFloating Solar
Floating solar supports sustainable development by enabling clean power generation while reducing pressure on land resources.
Utility-Scale SolarSolar is the fastest-growing source of electricity, meeting most of the increase in global demand.
Offshore WindOffshore wind supports long‑term climate targets by providing utility‑scale renewable energy that can anchor a clean power mix alongside solar, onshore wind, hydro, and storage.
HydropowerHydropower provides clean and reliable electricity to communities, including in rural and remote areas.
GeothermalAs a renewable energy source, geothermal generates power continuously, unlike weather-dependent solar and wind.
Off-Grid SolarOff-grid solar delivers electricity through standalone, solar-powered products, offering a rapidly deployable and affordable offering for people without reliable grid access.
Clean HydrogenClean hydrogen encompasses both green hydrogen based on renewable energy and hydrogen derived from fossil fuel coupled with carbon capture technology.
Energy StorageEnergy storage systems like batteries ensure an uninterrupted supply of energy - even when the sun does not shine and the wind does not blow.
Clean CoolingClean cooling is critical for economic development and improving people’s living conditions in a warming world.
Mini GridsMini grids play a critical role in providing electricity in rural and underserved areas, delivering reliable, community-scale power, quickly and flexibly.
- ThemesThemes
- Access to Electricity
- Modern and Digital Utilities & Grids
- Energy Efficiency
- Risk Mitigation for Renewables
- Small Island Developing States (SIDS)
- Clean Cooking
- Women in Energy
- Jobs in Energy
- Energy Markets & Trade
- Energy Subsidy Reforms
- Energy Data
- Transitioning Away from Coal
- Accelerating Industrial & Residential Decarbonization
Access to ElectricityAccess to dependable and affordable electricity is critical to lifting people out of poverty.
Modern and Digital Utilities & Grids
Energy EfficiencyImproving energy efficiency is essential to curb costs, avoid unnecessary investments in new infrastructure and fuel imports, and strengthen energy security.
Risk Mitigation for RenewablesEffective risk mitigation instruments can catalyze entire energy markets, build investor confidence, lower tariffs for consumers, and create conditions for sustained private sector engagement.
Small Island Developing States (SIDS)Transitioning to renewable energy helps to shield SIDS against expensive fossil fuel imports’ drag on their budgets, fosters economic growth while mitigating climate change impacts.
Clean CookingESMAP’s Clean Cooking Fund advances global advocacy and stakeholder engagement while providing financing, technical assistance, and systematic support to developing countries to scale clean cooking access.
Women in EnergyIncreasing women’s participation in the energy sector promotes diverse perspectives and decision-making, drives innovation, fosters sustainable development, and better solutions for global energy challenges.
Jobs in EnergyReliable, affordable energy enables jobs and raises productivity across agriculture, manufacturing, and services.
Energy Markets & TradeA well-functioning, flexible, and financially sound power sector is a necessary foundation for the energy transition, which requires the sector to adopt new service delivery models and disruptive technologies, integrate new and cleaner sources of energy, and adapt market regulations and incentives to ensure sustainable change.
Energy Subsidy ReformsReforming energy subsidies can help ensure energy prices reflect true market costs of different energy forms, leveling the playing field for clean energy and energy efficiency.
Energy DataData and analytics are key to evidence-based decision-making on policies and investments necessary for achieving SDG7. Comprehensive, detailed data at the global and country levels for energy access (electricity and cooking solutions) is lacking. Geospatial information gaps are a barrier to electrification planning. More efficient ways of data collection for energy access are required to support scaled-up investment.
Transitioning Away from CoalTransitioning away from coal offers significant economic, health, and environmental benefits, as renewables are becoming cheaper than coal and provide a sustainable, inexhaustible energy supply.
Accelerating Industrial & Residential DecarbonizationThe industrial sector is progressively becoming the primary source of CO2 emissions, and its decarbonization is critical to limiting the global temperature increase. Three industries – iron and steel, non-metallic minerals (cement, glass, lime), and chemical industries – are responsible for 70 percent of all direct industrial CO2 emissions today. Innovation will be key to decarbonize the industry, particularly in high temperature heat applications.
The rapid industrialization taking place in low- and middle-income countries, where the bulk of greenfield developments and expansions of facilities will take place, presents a key opportunity to shape a low carbon future and improve the competitiveness of industries. The World Bank Group (WBG), through ESMAP, is uniquely positioned to support client countries in decarbonizing their industrial sectors by helping them adopt innovative technologies and solutions, leapfrogging old technologies that could have locked-in carbon emissions for decades.
- Our ImpactResults Stories
IMPACT Issue 10 | Listening to Client Needs: ESMAP Support to Turkey's Energy Transition 2007-2015
Few countries can parallel Turkey’s efforts to restructure its energy sector over the past 15 years. Moving from a state-owned, vertically-integrated model, Turkey has entirely privatized electricity distribution; passed ground-breaking electricity market, renewable energy, and energy efficiency legislation; established new regulatory bodies; and carried out price reform.
- Data
- PublicationsESMAP Annual Report 2025Main Report | Annexes
In fiscal year 2025, ESMAP delivered significant results, including access to electricity for 21 million people and clean cooking solutions for 1.1 million. ESMAP initiatives also enabled 5,552 MW of new renewable energy capacity. Looking at cumulative achievements since fiscal year 2021, ESMAP’s support has helped 58 million people gain electricity access, 2 million benefited from clean cooking technologies, and contributed to 86,752 MW of renewable energy capacity.
ESMAP Business Plan FY2025-2030In its Business Plan FY25-30, ESMAP aims to support client countries on three overarching objectives:
Ensure universal access to affordable, reliable, and modern energy services by 2030;
Accelerate the transition towards a sustainable, just, and decarbonized energy system; and
Ensure the resilience and adaptation of the energy sector to the growing impacts of climate change and other shocks.
The Business Plan has two focus areas: Energy Access and Energy Transition. The Energy Access focus area helps World Bank clients achieve results on the ground and will employ three approaches: i) catalytic incentives to facilitate private sector investments and connections, ii) hands-on implementation support, and iii) tailored solutions for all beneficiary groups. The Energy Transition focus area will be implemented through three complementary workstreams: (i) scaling up renewable energy, storage, and clean hydrogen; (ii) scaling-up energy efficiency and decarbonization of end-use sectors; and (iii) transitioning away from unabated fossil fuel.
These workstreams will be supported by the Financial Innovation Window designed to provide last-resort project de-risking and incentives for innovation and resilient investment. All workstreams will support economic and leadership opportunities for women and excluded groups.
Productive Use of Energy | A Program Design GuideThe Energy Sector Management Assistance Program (ESMAP) report, Productive Use of Energy: A Program Design Guide, highlights the importance of converting electricity access into jobs, higher incomes, resilient livelihoods, and economic growth. In 2024, 655 million people lacked basic electricity access, particularly concentrated in sub-Saharan Africa and harder-to-serve communities.
The guide helps governments and development partners design sustainable Productive Use of Energy (PUE) programs by providing a practical framework to gather data, map and consult stakeholders, analyze market barriers, and design interventions.Key Findings
Outcome-led design: Prioritize development outcomes over a technology or its power sourceCross-sectoral collaboration: Engage non-energy partners from design through deliveryAgile implementation: Build on existing intelligence and institutionsHolistic support: Combine reliable energy with financing, technical assistance, business skills, and market access, emphasizing inclusion, particularly for women.Long-term sustainability: Establish exit strategies and identify market actors responsible for sustaining services after external support ends.The ESMAP report emphasizes that sustainable PUE markets require coordinated, inclusive, evidence-based, and flexible program design, supported by clear performance indicators, independent evaluations, and transparent reporting.
Blog
Hydrogen Accelerates Energy Transition in Developing Countries
Nov 04, 2022
