Helping utilities in developing countries leverage innovation to achieve the energy transition
The energy sector is undergoing a transformation driven by decarbonization goals and technological advancements. These factors challenge the traditional utility system and the adequacy of existing regulations. In addition, the increasing availability of cost-effective digital technologies is opening new opportunities for enhanced data-driven decision-making, automation, and new business models that can help improve the flexibility and reliability of power grids. This is critical for the higher penetration of variable renewable energy, distributed energy resources, and clean energy transition. However, for utilities in developing countries, the lack of knowledge and financial resources can be challenging. Yet, it also presents an excellent opportunity to deliver on the urgent goals of universal access and full decarbonization.
ESMAP’s Utilities for the Energy Transition Program supports utilities in developing countries contending with this changing landscape. The program provides technical assistance and pilot programs to guide utilities’ investments in digital and decentralized technologies, such as advanced metering infrastructure and grid-connected distributed energy resources. In addition, the program seeks to help client countries design and implement new utility business and regulatory models that bolster the energy transition, harnessing the deployment of new technologies and service providers in the energy sector.
The Utilities for the Energy Transition program supports teams across the World Bank and utilities and governments in developing countries through two main workstreams:
- Country and regional grants: Through its grants, the program supports World Bank lending engagement focused on utility modernization and performance improvement. Activities include a wide array of technical assistance for utilities around the world such as the formulation of smart grid roadmaps and strategies, design of investment in specific Information and Operational Technology (IT and OT) systems, assessing the impact of and business model for distributed energy resources, design and piloting of utility enabled appliance financing to stimulate demand, and the support for design of enabling regulatory mechanisms. The program also focuses on capacity building to enable utilities to understand and better leverage opportunities for digital transformation.
- Global knowledge and dissemination: The program complements the country grant portfolio with global knowledge. Through the global knowledge work, which includes analytical reports, knowledge exchange, and capacity building, the program enables World Bank and staff and clients to better integrate digitalization and data-driven transformation opportunities into investment projects and policy dialogue. The program collaborates with various teams in the World Bank in this endeavor.
Our Work
Between 2020 and 2024, the program has allocated US$8.4 million (as of April 2024) in country grants for activities in 27 countries in Latin America and the Caribbean, Africa, South and East Asia, and Eastern Europe and Central Asia.
Our Partners
IEA - https://www.iea.org/
SEPA - https://sepapower.org/
ISGAN - https://www.iea-isgan.org/
KEPCO - https://home.kepco.co.kr/kepco/EN/main.do
African School of Regulation - https://africanschoolregulation.org/