This knowledge note singles out auctions as an important mechanism that has been implemented in a growing number of countries in recent decades.
... Voir la suite It features case studies of auctions designed to promote the generation of electricity from renewable sources in Brazil, China, and India. Auctions in various forms are being used to promote the generation of electricity from renewable sources. Properly structured auctions can avoid the disadvantages of feed-in tariffs and renewable purchase obligations. Moreover, they offer the best of both of these early mechanisms, providing stable revenue guarantees for investors while also avoiding the risk of overbuilding. They do this by determining both price and quantity in advance. Promoting renewable energy through auctions is important, because experience with the use of auctions can guide future efforts. Among the examples of the benefits to be obtained from generating electricity from renewable sources are (i) increasing countries' energy security by reducing their dependency on fossil fuel imports, (ii) reducing greenhouse gas emissions as part of a worldwide effort to mitigate climate change, (iii) promoting electrification while reducing the need for isolated applications such as diesel generators, and (iv) minimizing local pollution. Auctions are an effective way to stimulate competition among investors, provide price disclosure while eliciting the right amount of investment, and offer revenue stability via long-term contracting.
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This knowledge note singles out auctions as an important mechanism that has been implemented in a growing number of countries in recent decades.
... Voir la suite It features a case study of auctions designed to promote the generation of electricity from renewable sources in Brazil. The Brazilian experience with wind energy auctions illustrates that even carefully designed policies often must be reconsidered in the light of a complex and changing environment. Many considerations need to be taken into account to ensure competitive prices while also delivering the required renewable energy supply. This case study is interesting, because Brazil's initial success with developing wind capacity had unforeseen consequences. Challenges introduced in the first stage of wind power development had to be solved in the second. The chief challenges were (i) the Brazilian system had to be able to balance supply and demand more accurately; (ii) investors were overoptimistic about the amount of electricity able to be generated; and (iii) the government's arrangements for coordinating the planning of generation and transmission left too little room for error. The benefits offered to the auctioned plants were reduced, as was government involvement in planning and coordinating transmission expansion. The key lesson from this case study is that existing policies should be challenged and revised in response to a changing environment.
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Fiche 88695 JUN 13, 2014
Azuela, Gabriela Elizondo; Barroso, Luiz; Cunha, Gabriel
This knowledge note singles out auctions as an important mechanism that has been implemented in a growing number of countries in recent decades.
... Voir la suite It features a case study of auctions designed to promote the generation of electricity from renewable sources in China. Although feed-in tariffs are now the cornerstone of China's renewable energy policy, auctions have played and continue to play a role in identifying market prices for renewable energy in the country. Experience with the auctioning of wind and solar concessions enabled the Chinese authorities to modify auctions over time to yield accurate information about the costs of generation from renewable sources, allowing them to set feed-in tariffs at efficient levels. This case study is interesting, because China has set aggressive renewable energy targets and introduced policy incentives for rapid market development. Initial renewable energy prices showed significant variation, and the governments targets were not achieved prior to 2005. The most important milestone in the development of renewable energy in China was the 2005 Renewable Energy Law. China has applied successive adjustments to concessions auctions to improve their usefulness in setting appropriate feed-in tariffs. The key lesson from China's experience with auctioning of concessions is that winning bid prices that are lower than actual costs wind up deterring the development of renewable energy.
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This knowledge note singles out auctions as an important mechanism that has been implemented in a growing number of countries in recent decades.
... Voir la suite It features a case study of auctions designed to promote the generation of electricity from renewable sources in India. The country's national- and state-level experience with auctions of solar energy products both large and small attests to the flexibility and adaptability of auction mechanisms. Under the National Solar Mission, auctions have been implemented with good results in a variety of settings. Lessons include the importance of clear ideas about key goals and objectives, and about areas where sacrifices can be made. Experience in several states has also underlined the importance of regulatory stability. This case study is interesting, because India's National Solar Mission led to concurrent implementations of renewable auction schemes. Both national- and state-level auctions have led to successful projects. The Indian central government's experience with auction implementations can be split into three main segments. Phase 1 auctions concern centralized auctions for procuring utility-scale solar plants. Rooftop auctions concern central government conducted auctions for rooftop solar generation in specific cities. No centralized auctions for large-scale solar generation were conducted in 2012 or 2013, so phase 2 auction were created under a new bidding process. Successive delays that were observed in the implementation of phase 2 auctions had negative results. Investors need to feel secure before they will establish a strong manufacturing or developer base.
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There are two initial challenges in defining and measuring energy access: the absence of a universal definition of energy access and the difficulty of measuring any definition in an accurate manner.
... Voir la suite The multi-tier approach to measuring energy access proposed in the Sustainable Energy for All (SE4ALL) Global Tracking Framework of 2013 introduces a five-tier measurement methodology based on various energy attributes, such as quantity, quality, affordability, and duration of supply. The approach makes it possible to compute a weighted index of access to energy for a given geographical area. Separate notes focus on multi-tier measurement of energy access for households, productive enterprises, and community institutions. The type of data required for a multi-tiered assessment of energy access in a given area can be obtained through surveys of actual energy availability and use among a scientific sample of all users in a given category (households, enterprises, community institutions). Survey questionnaires elicit information about each energy attribute, and the results are fed into the multi-tier matrices. Data may also be collected from energy suppliers to indicate the tiers of access that specific projects may deliver to a targeted population. Capturing the multi-dimensionality of energy access is important, because rapid expansion of access to energy requires both accurate assessment and tracking of progress. Under the new multi-tier framework, data from energy surveys are compiled and analyzed to produce an energy access diagnostic for a given area. The diagnostic includes an in-depth disaggregated data analysis and an aggregate analysis comprising a series of indices of energy access. Defining and measuring energy access by considering attributes of energy supply yields a better understanding of how various interventions improve access.
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Electric utilities are key actors in the quest to induce large-scale energy savings among end users. But often it is not enough simply to mandate utilities to achieve a specific target.
... Voir la suite Three new market-based mechanisms are available for utilities to use in promoting energy efficiency. Historically, mechanisms of demand-side management may be classified as regulatory, policy-based, market-based, and load-targeting. This knowledge note is important, because electric utilities are well-positioned to help raise energy efficiency. The three new market-based mechanisms to help achieve this goal include Establish a white certificates scheme establishing a white certificates scheme, establishing energy efficiency auctions, and establishing energy efficiency feed-in tariffs. These new market-based models are available for utilities to use in promoting energy efficiency, in concert with other means of procurement. Whatever the design, program effectiveness will depend on technically competent and trusted verification of energy savings and their costs, long-term commitment to maintaining the efficiency program, and flexibility in adjusting it over time to ensure that programs keep performing.
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This knowledge note is the second of three case studies that concerns scaling up access to electricity in Africa, Bangladesh, and Rwanda. Since its inception in 2003, Bangladesh's solar home system program has installed about three million electrification systems in rural households, two-thirds of them in the last three years.
... Voir la suite The program is the most dynamic off-grid electrification program in the world, benefitting more than 15 million people and contributing about 130 MW in renewable energy generation capacity. The case study for Bangladesh is interesting, because off-grid electrification is crucial to reaching universal access. Achieving universal access to modern energy services is one of the three complementary objectives of the Sustainable Energy for All (SE4ALL) initiative. Bangladesh's rural electrification program was initiated in 1977 with the creation of the Rural Electrification Board (REB). Yet, it was estimated that at the prevailing pace of grid electrification, Bangladesh was going to take 50 years to reach universal access. By 2002, it had become apparent that an off-grid approach was needed to complement efforts to extend the grid. When the World Bank's first RERED project was being designed in 2002, a two-pronged approach was adopted to promote the use of solar home systems in rural areas, thereby leveraging the country's renewable energy potential, while continuing to help the REB and rural cooperatives improve their operational and financial performance. The programs final design is a good example of how international experience and local know-how can come together to yield an innovative design that suits the country's circumstances. The project's design was flexible (with a range of subsidies and system sizes, for example), allowing for quick adaptation to evolving technology and market conditions, and to consumer feedback.
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This knowledge note is the third of three case studies that concerns scaling up access to electricity in Africa, Bangladesh, and Rwanda. Rwandas rapid achievements in expanding access to electricity after 2009 were made possible by one of the first applications of a sector-wide approach (SWAp) in the electricity sector.
... Voir la suite The World Bank played a pivotal role in the operationalization of the SWAp, first by assisting in the formulation of an investment prospectus that laid the groundwork for technical, financial, and implementation planning. The Rwandan experience is instructive for countries considering the adoption of a similar approach, particularly those starting from a low base. Rwanda's experience with electrification is an interesting case of how access to electricity can be quickly scaled up despite deficits in infrastructure and institutional capacity. In all, the SWAp in Rwanda delivered tremendous improvements in electricity access over a relatively short period of time. Although challenges remain, the program is on its way to achieving even the ambitious targets set for 2017 under the EARP II. Rwandas experience has showed that with government ownership and alignment with national priorities, using SWAps in the electricity sector is a viable and attractive alternative to traditional project-based support.
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This knowledge note is the first of three case studies that concerns scaling up access to electricity in Africa, Bangladesh, and Rwanda. Lighting Africa, a joint IFC and World Bank program launched in 2007, was the first private-sector-oriented effort to leverage new LED lighting technologies to build sustainable markets that provide safe, affordable, and modern off-grid lighting to communities in Africa that lack access to electricity.
... Voir la suite By 2030 the program aims to enable the private sector to reach 250 million people who now depend on fuel-based lighting. The case study for Africa is important, because the continent faces a huge rural electricity deficit. Global electrification in 2010 was estimated to be about 83 percent. The deficit of 17 percent encompasses some 1.2 billion people. Achieving universal access to modern energy services is one of the three complementary objectives of the Sustainable Energy for All (SE4ALL) initiative. Lighting Africa succeeded as a catalyst for the off-grid lighting market in Sub-Saharan Africa. Another success is apparent in the spectacular trajectory of solar lantern sales in Kenya. On the climate front, the program has avoided 274,000 tons of greenhouse gas emissions, the equivalent of taking 35,000 cars off the road. Important lessons were learned during the first phase of the program. Some interventions were very successful; others could have been done differently. Going forward, the Lighting Africa program will support the geographic expansion of ongoing activities to enable market-based solutions for affordable, modern off-grid lighting. The following challenges will be addressed: solar home systems, consumer awareness, and impact evaluation.
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Many economically attractive opportunities to invest in energy efficiency are forgone because of various market barriers, notably the limited availability of commercial financing for energy efficiency projects.
... Voir la suite Once a government decides, as a matter of policy, to scale up energy efficiency, it typically must engage commercial banks to provide financing to the private end users who will carry out the energy efficiency projects needed to make the national policy a reality. Credit lines help banks establish an energy efficiency business line by mitigating the perceived high financial risk of energy efficiency projects and of the energy service companies that carry them out, and sometimes by building into the credit line a technical assistance component to improve understanding of the fundamentals of energy efficiency projects. Energy efficiency credit lines make funds available to participating financial institutions (including local banks). The success of a credit line depends to a great extent on the selection of competent and committed financial institutions. A technical assistance component built into the credit line helps lower the technical and financial risk of projects.
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The kinetic energy in wind is converted into mechanical power in specialized propeller-driven turbines mounted on towers. A generator inside the turbine converts the mechanical power into electricity.
... Voir la suite Utility-scale wind turbines range in size from 100 kilowatts to as large as several megawatts. Turbines can be built on land or offshore and are grouped into 'wind farms' that provide bulk power to the electrical grid. Smaller turbines are used for homes, telecommunications dishes, and water pumping, sometimes in connection with diesel generators, batteries, and photovoltaic systems. Such hybrid wind systems are typically used in remote, off-grid locations, where a connection to the utility grid is not available. This note focuses on onshore wind energy, which is more widely established and has lower risks than offshore wind.
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The World Health Organization estimates that in 2012 about 4.3 million deaths occurred because of exposure to household air pollution caused by smoke from the incomplete combustion of fuels such as wood, coal, and kerosene.
... Voir la suite Inefficient energy use in the home also poses substantial risks to safety, causing burns and injuries across the developing world. To support the achievement of these goals, a starting point must be set, indicators developed, and a framework established to track those indicators until 2030. The World Bank and International Energy Agency have led a consortium of 15 international agencies to produce data on access to nonsolid fuel for the SE4ALL Global Tracking Framework. Launched in 2013, the framework defines access to modern cooking solutions is as the use of nonsolid fuels for the primary method of cooking. Nonsolid fuels include (i) liquid fuels (for example, kerosene, ethanol, or other biofuels), (ii) gaseous fuels (such as natural gas, LPG, and biogas), and (iii) electricity. These are in contrast to solid fuels such as (i) traditional biomass (wood, charcoal, agricultural residues, and dung), (ii) processed biomass (pellets, briquettes); and (iii) other solid fuels (such as coal and lignite).
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Fiche 88059 MAY 15, 2014
Banerjee, Sudeshna Ghosh; Portale, Elisa; Adair-Rohani, Heather; Bonjour, Sophie
Access to electricity in flexible, reliable, and sustainable forms brings a range of social and economic benefits, enabling people to leap from poverty to a better future, enhancing the quality of household life, and stimulating the broader economy.
... Voir la suite Modern energy is essential for the provision of health care; clean water and sanitation; and reliable and efficient lighting, heating, cooking, mechanical power, transportation, and telecommunications. To support the achievement of these goals, a starting point must be set, indicators developed, and a framework established to track those indicators until 2030. The World Bank and International Energy Agency have led a consortium of 15 international agencies to produce data on access to electricity for the SE4ALL Global Tracking Framework. Launched in 2013, the framework defines electricity access as the presence of an electricity connection in the household as typically reported through household surveys.
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The growing interest in clean cooking, with its potential benefits for human health, environmental protection, and climate change, has prompted development specialists to reconsider the quality and performance of cook stoves.
... Voir la suite Governments, donors, and development organizations want to ensure that the cook stoves they promote meet standards that will yield the greatest possible benefits over time, when adopted and used properly. Households need to understand differences in cook stove performance if they are to select those that represent the best value for money. In this context, the report presents problems of traditional cook stoves; benefits of fuel-efficient cook stoves; potential benefits of advanced combustion cook stoves; and can cook stove performance be measured?
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Fiche 88058 MAY 15, 2014
Ekouevi, Koffi; Freeman, Kate Kennedy; Soni, Ruchi
This note is the first report of energy-sector results indicators reflecting the World Bank's broad lending patterns during FY2000-13. To compile it, energy projects back to FY2000 were manually screened for results data comparable with the standardized indicators now used in the Bank's corporate scorecard.
... Voir la suite In the future, automation will make it easier to collect, aggregate, and analyze data on project outcomes.
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Mexico's 2010 national energy strategy aims to promote sustainability and simultaneously increase energy access by increasing the share of renewable resources used to generate energy.
... Voir la suite The wind farms of La Ventosa, a windy area in the southeastern state of Oaxaca, are a key part of that strategy, which aims to raise the share of renewables in generation to 35 percent by 2024, up from 23.7 percent in 2008. The open season process was a major breakthrough that made possible several agreements to build wind power generation projects in an area that previously had been closed to development because of the lack of transmission infrastructure. The open season process gave developers of renewable energy the certainty and predictability they needed concerning the development of transmission infrastructure, while also reducing the investment costs of that infrastructure by ensuring development of an optimized and shared network. Moreover, the system is transparent for all participants. It highlights the ability of Comision Federal de Electricidad (CFE) to modernize its role as a facilitator and creative problem solver, and encourages renewable energy developers and energy consumers to collaborate and follow through on their commitments for the benefit of all involved.
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Many countries are scaling up their investments in renewable energy. In 2010, electricity production from renewable sources - wind, solar, biomass, biofuels, geothermal, hydropower, and ocean energy accounted for 18 percent of global electricity supply.
... Voir la suite By early 2011, renewables made up a quarter of all installed power capacity. One of the main obstacles to the scale-up of renewable energy is connecting generating sites to the grid in an efficient manner. Renewable energy places greater demands on the transmission network than do conventional energy sources. First, the richest sites for solar and wind energy is often spread across multiple locations far from consumption centers or existing transmission networks. Second, generation is subject to variability in climate conditions (such as wind speed and solar radiation). This note focuses on the transmission implications of the dispersion of renewable energy sources, rather than on the implications of variability. In some sub regions of the United States and countries in Europe that are pursuing renewable energy options, the requirements for investment in transmission already approved by regulators (or forecasted by transmission companies) are double or quadruple recent investment trends. In Brazil the investment needs for renewable energy in some regions surpass the asset value of the distribution utilities closest to the renewable sites.
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Brazil has one of the world's cleanest energy portfolios, with 85.3 percent of overall energy production coming from renewable sources (compared with the worldwide average of 16 percent), and with 75 percent of the country's 105,000 megawatt (MW) installed generation capacity coming from hydropower plants alone.
... Voir la suite The country has improved its procedures for building new energy facilities and connecting them to the grid. The distribution companies in the zone where transmission services were needed lacked the personnel to plan network expansion. In addition, in certain cases, the network needs of the renewable energy providers requesting transmission services dwarfed in size and capital cost the entire existing distribution network in the area. To address the challenges of planning and paying for the transmission infrastructure needed to bring energy from renewable sources to the grid, Brazil devised a competitive process to develop shared transmission networks for renewable energy. The procurement process provides transparency that helps reveal the cost of efficiently delivering infrastructure, supports a realistic and sustainable pricing structure, and creates an environment for both generation and transmission that is attractive to the private sector.
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The note is based on original work by Marcelino Madrigal and Steven Stoft, "Transmission Expansion for Renewable Energy Scale-Up: Emerging Lessons and Recommendations".
... Voir la suite Texas leads the United States with 9,528 MW of installed wind power capacity, a level exceeded by only four countries. The state needed more infrastructure to transmit electricity generated from renewable sources, but the regulator could not approve transmission expansion projects in the absence of financially committed generators. To solve the problem, Texas devised a planning process that quickly connects energy systems to the transmission system. The system is based on the designation of competitive renewable energy zones.
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The energy sector contributes about 40 percent of global emissions of CO2. Threequarters of those emissions come from six major economies. Although coal-fired plants account for just 40 percent of world energy production, they were responsible for more than 70 percent of energy-sector emissions in 2010.
... Voir la suite Despite improvements in some countries, the global CO2 emission factor for energy generation has hardly changed over the last 20 years.
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