Overview of Energy Sector Activities of the World Bank Nataliya Kulichenko Senior Energy Specialist Sustainable Energy

1. Overview of Energy Sector Activities of the World Bank NataliyaKulichenko Senior Energy Specialist Sustainable Energy Department Workshop on Carbon Capture and Storage: Perspectives for the Southern Africa Region Johannesburg May 31st – June 1st 2011

2. Rapidly Growing Portfolio • WBG energy financing exceeded $13 billion in last fiscal year. • Up from $2.3 billion eight years ago. • All sources: • 40% IBRD • 21% IDA • 26% IFC • 4% MIGA • 5% Climate Finance • 4% Other sources

3. Rapidly Growing Portfolio

4. Partnerships Global Environmental Facility Carbon Finance Scaling Up Renewable Energy (SREP) Trust Funds Clean technology Fund (CTF)

5. Examples of Projects Pioneering SWAP in Rwanda • 6% of households have grid supply, but high density – 320 p/km2 • Estimated capital costs of $378 million to 2013 • $357 million pledged by 12 donors + GoR • 706K new connections, 433MW new generation by 2020.

6. Examples of Projects • Geothermal • Kenya • Addition of 280 MW of installed geothermal capacity at Olkaria • Indonesia • Financed through IBRD loan and CTF • Construction of 110MW and 40MW plants

7. Examples of Projects • Concentrating Solar Power (CSP) • Joint WB/GEF support for two hybrid Integrated Solar Combined Cycle plants in Egypt and Morocco, each with a 20 MW CSP component. • Provided significant lessons learnt in terms of procurement and local manufacturing possibilities • Global CSP Program (TF funded) to enhance understanding of barriers to CSP deployment •  Informs government policy on creation of suitable regulatory and financial incentive • CTF Regional Investment Plan for CSP in MENA region aiming to support deployment of 1GW • CTF support to South Africa CSP demonstration project of about 100 MW • India CSP Program to support the implementation of Jawaharlal Nehru National Solar Mission

8. Examples of Projects • Carbon Capture and Storage Capacity Building Trust Fund Source Image: Vattenfall, SchwarzePumpe

9. World Bank Activities: CCS Trust Fund • Two core elements guiding its work at the international, regional and national levels: • Capacity building and knowledge sharing assistance regarding CCS, • Carbon asset creation services. • In co-operation with leading international and bilateral initiatives (Global CCS Institute, Carbon Sequestration Leadership Forum, IEA Programs and others) • Total capitalization of the Trust Fund is $11 million: • Government of Norway – $9 million, • Global CCS Institute – $2 million. • The work program consists of the following two components: • Country-level component focusing on nine country- or project-specific activities ($6.9m) • Analytical component: regional regulatory, economic and financial instruments analyses, July 2010 – June 2011 ($0.61m) Main objectives of the CCS TF CCS TF structure and work program

10. Nine country projects Kosovo Jordan Maghreb China Egypt India Indonesia Botswana South Africa

11. Work Program - Country level activities • Projects include: • Assessments of geological storage • Training and workshops • Assessments of applicability of capture technologies

12. Work Program - Country level activities Examples of country work program Botswana • Project activities include • Identification of sites suitable for CCS geological storage or enhanced coal bed methane recovery • Formation of the Carbon Working Group • Creation of a sustainable Carbon Secretariat as part of the ministerial structure • Organization of at least 3 thematic workshops

13. Work Program - Country level activities Examples of country work program South Africa • Project activities include • advance the work already carried out in identifying storage sites from the current theoretical storage • technical feasibility assessment for deployment of storage technologies • of a scoping study and business plan for the first test injection • review of regulatory and institutional adjustments

14. Work Program - Country level activities Examples of country work program Jordan • Project activities include • Assessment of potential for CCS activities, such as CO2 sequestration in oil shale • Assessment of institutional capacity for CCS • Recommendations on capacity-building activities • Identification of barriers to CCS development and applications

15. Work Program - Country level activities Examples of country work program Kosovo • Project activities include • Scoping study of geological storage potential • Pre-feasibility study for CO2 capture at the proposed KRPP • Training and thematic workshops for key CCS stakeholders

16. Analytical study: Carbon Capture and Storage: Regional Perspectives in developing countries The final report on the ESW work will be completed by July 2011

17. World Bank CCS Trust Fund Events • Dubrovnik workshop May 4-5 • Johannesburg workshop May 31st – June 1st • Washington DC workshop at World Bank Group HQ September 7-8

18. Johannesburg workshop objectives • To inform potential CCS stakeholders in the Southern Africa region on • the latest CCS developments • potential prospects for CCS in the region • opportunities for capacity building • To promote knowledge sharing and encourage information exchange among local participants and international organizations with experience in CCS technological, financial and regulatory issues • To learn the CCS capacity building needs in Southern Africa

19. Next steps • A breakout session to discuss your feedback on: • potential for employing CCS as a climate mitigation technology in the region • barriers to employing CCS technology • capacity building needs in the region and/or specific countries • Can provide appropriate contacts and information in CCS capacity building activities

20. Thank you

21. Back up slides

22. Climate Investment Funds Clean Technology Fund Strategic Climate Fund Finance scaled-up demonstration, deployment and transfer of low carbon technologies Targeted programs with dedicated funding to pilot new approaches with potential for scaling up Investment Plans Pilot Program for Climate Resilience Mainstream climate resilience into core development planning Forest Investment Program Reduce emissions from deforestation and forest degradation Scaling Up Renewable Energy in Low Income CountriesInitiate transformational change by use of renewable energy • Support country and regional development strategies • Leverage financial products of Multilateral Development Banks • Stimulate private sector engagement ±$4.3billion ±$1.8billion

23. CTF: Distribution by Technologies

24. CTF: Allocation by Countries

25. CTF: Examples of Investments • Financial Intermediary operation for RE/EE: Turkey • Utility-Scale CSP: South Africa, MENA • Wind: South Africa, Egypt • RE: Thailand • Energy Efficiency: Mexico, Thailand, • Smart Grid: Turkey, Ukraine and Vietnam • Geothermal: Indonesia • Low Carbon Urban Transformation: Thailand • Bus Rapid Transit: in Egypt, Mexico, Philippines and Thailand

26. SCF: Scaling Up Renewable Energy Program in Low Income Countries(SREP) Purpose ― To pilot and demonstrate the economic, social and environmental viability of low carbon development pathways in the energy sector by creating new economic opportunities and increasing energy access through the use of renewable energy Scale ― $310 million in pledges for significant programs of capacity building and investments in renewable energy Measuring Success • Remove barriers to renewable energy • Lead to replication of renewable energy investments • Increase installed renewable energy capacity in a country’s energy supply

27. SREP Pilot Countries • $ 60 million in reserve • Criteria for allocation of the reserve to be developed • Initial six countries selected • Ethiopia: $ 25 million – 50 million • Honduras: $ 25 million – 30 million • Kenya: $ 25 million – 50 million • Maldives: $ 25 million – 30 million • Mali: $ 25 million – 40 million • Nepal : $ 25 million – 40 million

28. SREP Pilot Countries II • Subject to availability of funds • Additional six pilots selected • Armenia • Liberia • Mongolia • Pacific regional program • Tanzania • Yemen