Scaling-up Renewable Energy Program for Low Income Countries (SREP): Questions, Answers & Revisions

Transcription

1 Scaling-up Renewable Energy Program for Low Income Countries (SREP): Questions, Answers & Revisions Lucio Monari Sector Manager Energy Sustainable Development Vice Presidency The World Bank October 15, 2008

2 Overview of Questions Received Comments received from IADB, Norway, Switzerland, UK, and USA. Key Issues: 1. How is SREP different from other funding mechanisms for access and renewables? 2. What should be the target area for SREP? 3. What modalities of assistance under SREP? 4. Indicators and Sustainability

3 SREP s Complementarity with other funding mechanisms SREP is targeted at investments, while ESMAP, etc. provide only TA and capacity building. SREP designed to target a financing gap, i.e. for scaling up access to renewable energy in low income countries; Agree on the importance of ensuring that SREP s distinct role clearly understood language added in SREP background;

4 SREP: Leveraging Renewable Energy for Low Income Countries Pre-investment and technical assistance support for renewable energy projects in Asia and Africa ASTAE and ESMAP New CEIF MDTF support for Bankexecuted work in Africa AFREA & ASTAE through NTFRE Recipient executed work to pilot and build capacity for innovative renewable energy projects in Africa and Asia ASTAE AFREA & ASTAE through NTFRE CEIF MDTF for Africa Scaling-up Renewable Energy Program for Low Income Countries [Grants] New renewable energy projects for MDB financing Clean Technology Facility for Transformative and Large Scale Renewable Energy Projects [Grants or Concessional Loans] Energy for the Poor Initiative: Medium Term Component [Parallel financing] Carbon Finance and Carbon Partnership Facility [CER purchases] Global Environment Facility [Grants for barrier removal for large emitters]

5 SREP complements CIF/Energy for the Poor landscape IDA Countries Project Themes Energy Access Renewable Energy Energy Efficiency EFPI SREP CTF IBRD Net Oil Importers IBRD Largest GHG Emitters

6 What should be target areas for SREP? Developmental Impact: intention of SREP is to bring to bear the benefits that renewable energy can provide to assist today s development agenda of low income countries; Transformational Impact: SREP aims to achieve transformational impacts within the low-income country context; Broader Benefits of Energy Services: The focus of SREP is on economically least cost renewables and their use must be economically viable (including co-benefits). But useful to identify co-benefits. Need for Projects to have Scale-Up and Replication Potential: Agreed, and text expanded to reflect that.

7 What should be target areas for SREP? Private Sector Involvement: increasing access must benefit from private sector and civil society resources and capacities, but increasing access should not be conditional on making private sector development the primary goal; Climate and Environmental Impact: agree for GHG emissions reduction to be a factor, but need to recognize that the target group of countries are low emitters, and GHG reductions cannot be large. Specific Technologies: within renewables technology neutral to ensure best fit with local circumstances. Which Countries? Agree that it should be global in focus, but Africa has the biggest needs.

8 What modalities of assistance under SREP? Type of Assistance Provided SREP to fund to support policy and regulatory development. SREP Financing Mechanism contributing to other funds such as GEEREF or fund in fund mechanisms adds to transaction costs. SREP Management and Processing: SREP should be used as a co-financing source blended seamlessly into existing MDB lending processes Agreed. the subcommittee of the SREP may invite ad hoc technical experts to advise the sub-committee on issues such as project selection, guidelines Agreed and reflected in the text.

9 What Indicators and Sustainability of SREP? SREP s activities are to cater for the specific local context in order to provide for sustainable outcomes text strengthened Measuring results for SREP More thinking is needed on appropriate results measures and we welcome all ideas

10 Next Steps & Thanks Design Meeting in November 2008

11 Annex General Information on Global Programs and Partnerships

12 Global Programs and Partnerships GPP support broad range of global, regional, and institutional initiatives In collaboration multilateral development institutions, bilateral donors, civil society, foundations, and the private sector), promotes participation, sharing knowledge, and mobilizing financial resources GPP Group was established to: Ensure that senior management decisions on engaging in GPPs are well-informed, Strengthen analysis of GPPs and the Bank's role in them; and, Increase coherence of this important segment of the Bank's operations.

13 TF Support for World Bank Energy Programs ESMAP: Core and RE/EE TFs, CEIF MDTF ASTAE: NTFRE, other donors AFREA: Russian Fed. Energy TF, NTFRE Asia/Africa energy cofinancing: NTFRE, CEIF MDTF SFCCD: CIF, CPF, SREP (multiple donors) Energy for the Poor Initiative: Multiple donors CEIF: Clean Energy Investment Framework CIF: Clean Investment Facility CPF: Carbon Partnership Facility EE: Energy Efficiency MDTF: Multi-donor TF NTFRE: Netherlands TF for Renewable Energy RE: Renewable energy SFCCD: Strategic Framework for Climate Change and Development SREP: Scaling-up Renewable Energy Program for Low Income Countries

14 World Bank Trust Funded Energy & Climate Change Programs (1) Energy Sector Management Assistance Program (ESMAP) Secure energy requirements for equitable economic growth and poverty reduction in an environmentally sustainable way FY08-13 funding requirement: US$ 95 million ESMAP Clean Energy Investment Framework MDTF Africa Renewable Energy Access (Requesting US$ 31 million from Netherlands Strategies for transition to a lower carbon economy (UK DFID approx. GBP 1.7 million) TA for adaptation Asia Sustainable and Alternative Energy Program (ASTAE) Improving energy efficiency, scaling-up use of renewable energy and increasing access to energy to reduce poverty Requesting 15 million for FY09-12 from Netherlands TF for Renewable Energy (NTFRE)

15 World Bank Trust Funded Energy & Climate Change Programs (2) Russian Federation Energy Trust Fund Global Village Energy Partnership (US$ 5 million) Africa Energy Access Revolving Fund (US$ 25 million) NTFRE Netherlands TF for Renewable Energy Support enabling frameworks for renewable energy access and investments in renewable energy for Africa and Asia Requesting US$ 60 million from NTFRE Carbon Finance Approx. $ 2 billion in funds under management Global Environment Facility US$375.6 million (FY08) for all operational areas

16 World Bank Trust Funded Energy & Climate Change Programs (3) SFCCD Climate Investment Funds Clean Technology Fund (Preliminary pledges estimated at US$ billion) Strategic Climate Fund Carbon Partnership Facility Forest Carbon Partnership Facility Scaling-up Renewable Energy Programs for Low Income Countries Generation, rural electrification, clean cooking and heating fuels, and modern lighting with renewable energy sources Preliminary pledge estimates US$ million Energy for the Poor Initiative Energy Price Crisis Response MDTF Bilateral/multilateral parallel or co-financing to reduce longer-term vulnerability to high/volatile oil prices