2017/76 k nKonw A A weldegdeg e ol n oNtoet e s eSrei r e ise s f ofro r p r&a c t hteh e nEenregryg y Etx itcrea c t i v e s G l o b a l P r a c t i c e The bottom line Increasing the Potential of Concessions to Expand Rural The record of concession arrangements in stimulating Electrification in Sub-Saharan Africa faster and more effective rural electrification in Sub-Saharan How big a problem is lack of access to Can concessioning increase rural electrification? Africa is mixed at best: More electricity in Africa? Although none of the concession agreements concessions have failed than have been implemented—and The overall rate of access to electricity in in Africa’s power sector can be considered an among concessions that have Sub-Saharan Africa is just 35 percent; unequivocal success, certain characteristics, been implemented, none can the rural rate is considerably lower approaches, and conditions are associated with better be considered an unequivocal success. Still, properly structured Of the more than 1.1 billion people in the world living without access outcomes agreements can expand to modern energy sources, roughly 630 million live in Sub-Saharan Concessions—agreements in which the government grants a private electrification by connecting Africa (World Bank and IEA 2015). In several countries, more than company the right to extend a specific service under conditions of more households to the national four out of five rural households lack electrical power at home. significant market power—are one of many forms of private sector grid or to mini-grids. Lessons At its founding in 2013, Sustainable Energy for All (SE4All)—a engagement in infrastructure.1 A 2015 review by the World Bank from case studies shed light on partnership of the United Nations, the World Bank, and the (2017) identified nearly 200 electricity concessions in Sub-Saharan the circumstances under which International Energy Agency—announced the goal of achieving Africa. Many are small operations connecting as few as 100 custom- concessions work best. universal access to electricity by 2030. Progress toward that goal has ers. Others are national utility concessions that focus less on expand- been slow in Sub-Saharan Africa: Between 2000 and 2012, only 14 ing service to rural households than on improving the technical and of the 49 countries in the region increased the number of electricity financial management of the electricity sector as a whole.2 Richard Hosier is a connections by more than 1 percent a year. At current rates of About 15 African countries host one or more active concessions. senior energy specialist in progress, it will take more than 50 years for the subcontinent to Another six countries adopted electrification concessions at some the World Bank’s Energy and Extractives Global achieve universal access. Practice. Electrification in Sub-Saharan Africa is not keeping up with 1 A concession is thus a device that can be used to ”create competition for a market, when competition in the market is not operating” (Kerf and others 1998). population growth. As governments and the international community Morgan Bazilian 2 The World Bank survey included a desk review of nearly all electricity sector concessions in is a lead energy specialist strive to achieve universal electrification, and given the massive Sub-Saharan Africa from the late 1990s until 2015, when the review was conducted. In-depth, investments the power sector requires, pressure will grow to find field-based case studies were done for six countries: Cameroon, Madagascar, Mali, Senegal, in the same practice. South Africa, and Uganda. In addition, a brief review was done on the case of Burkina Faso, ways to tap private investment and expertise to meet the challenge. where the concession arrangement is unique, as the concessionaires are cooperatives rather than private companies. Tatia Lemondzhava is an energy consultant in the same practice. 2 I n c r e asi n g t h e P o t e n tial o f C o n c e ssi o n s t o E x pa n d R u r al El e c t r i f i c ati o n i n S u b - S a h a r a n A f r i c a point in the past 25 years but later abandoned them. Six or seven efforts. In four other countries for which case studies were done in others gave serious consideration to implementing a form of the recent World Bank survey—Cameroon, Madagascar, Mali, and concession before calling off the idea. Uganda—the concession programs resulted in electrification growth Three of the 12 African countries that increased access to of less than 1 percent a year. electricity most between 2000 and 2012 (Gabon, Senegal, and South The fundamental challenge in using public-private partnerships The fundamental challenge Africa) had concessions in place in 2015 (table 1). In neither Senegal is that rural electrification is not profitable within the time frames in using public-private nor South Africa can the relatively rapid increase in electrification normally considered attractive to the private sector. Partly because be attributed to the concessions, however; in both countries, the of household budget constraints and partly because of their lack partnerships is that national utility was responsible for the significant surge in electricity of electrical appliances, rural residents initially consume only small rural electrification is connections. In Gabon the government and the concessionaire amounts of electricity, frequently falling within the subsidized seg- not profitable within the cooperated to expand access, but population growth outpaced their ment of the tariff structure (often referred to as the “lifeline” tariff), time frames normally considered attractive to Table 1. Improvement access to electricity in selected Sub-Saharan countries (2000–12) the private sector. 2000 2012 Changes between 2000 and 2012 2012 Percentage Average annual Access increase in percentage Annual growth National National the national growth in population rank electrification electrification electrification electrification growth rate (#) Country Population rate (percent) Population rate (percent) rate (percent) rate (percent) 1 Senegal 9,860,578 37 13,780,108 57 20 1.67 3.12 2 South Africa 44,000,000 66 52,341,695 85 19 1.58 1.55 3 Ghana 18,824,994 45 25,544,565 64 19 1.58 2.44 4 Gabon 1,231,548 74 1,613,489 89 16 1.33 2.27 5 Lesotho 1,856,225 5 2,057,331 21 16 1.33 1.19 6 Togo 4,874,735 17 6,745,581 31 14 1.17 2.70 7 Ethiopia 66,443,603 13 92,191,211 27 14 1.17 2.56 8 Botswana 1,736,579 40 2,132,822 53 14 1.17 2.04 9 Mozambique 18,264,536 7 25,732,928 20 13 1.08 2.82 10 Benin 6,949,366 25 10,049,792 38 13 1.08 2.73 11 Cabo Verde 438,737 59 500,870 71 12 1.00 1.15 12 Rwanda 8,021,875 6 10,817,350 18 12 1.00 2.44 20 Uganda 23,757,636 9 35,400,620 18 10 0.83 3.27 22 Mali 11,046,926 17 16,112,333 26 9 0.75 2.98 26 Cameroon 15,927,713 46 21,659,488 54 8 0.67 2.53 43 Madagascar 15,744,811 11 22,293,720 15 4 0.33 2.80 Source: World Bank and IEA (2015) as reported in World Bank (2017). Note: Highlighted countries are those that had a concession in place during part of the period from 2000 to 2012. The concessions in Togo and Cabo Verde were terminated in 2006. 3 I n c r e asi n g t h e P o t e n tial o f C o n c e ssi o n s t o E x pa n d R u r al El e c t r i f i c ati o n i n S u b - S a h a r a n A f r i c a which does not begin to meet the capital costs of establishing new What kinds of electricity concessions have worked? connections and supplying electricity in rural areas. These features Concessions of mini-grids and of national utility of the rural electricity market in developing countries have limited functions have worked best in Africa the scope of concession arrangements and the potential of private Concessions fall into four types: mini-grids, solar home systems, rural sector participation. In Africa, only South Africa zonal, and national utilities. Because rural electrification has usually been inconsistent with has tried to concession Mini-grid concessions have shown themselves to be successful the investment requirements of private investors, many concession- at engaging local investors and increasing the number of rural solar home systems. Its aires demand public grants or cost-sharing to meet the financing customers served (table 2). In none of the countries case-studied, experience was not a gap associated with building and operating new rural electrification however, did these arrangements attract large international investors success, and the model or significantly increase overall national electrification. Mali may have lines. But as small-scale renewable energy technologies become is being abandoned. Solar implemented the most successful mini-grid program, which has a common part of the toolkit, so does the potential to reduce the home systems will certainly brought access to electricity to more than 70,000 people. capital costs and payback period of electrification. The maturation of In Africa, only South Africa has tried to concession solar home play an increasing role in geographic information systems (GIS) also promises to elicit greater systems. Its experience was not a success, and the model is being rural energy provision, but interest from private parties by lowering various types of risk. abandoned. Given the absence of natural monopolies and the rapid South Africa’s experience suggests that they will do Table 2. Sub-Saharan African countries with mini-grid concessions so outside the bounds of a Number of mini-grid Total number of concession framework. concessionaires connections made Average number and mini-grids in through mini-grid of connections Country Mini-grid program name Years in operation operation concessions per mini-grid Concessionaires = 92 Burkina Faso Electricity Cooperatives (Coopels) 2003–present 14,250 155 Mini-grids = 92 Concessionaires = 26 Guinea Decentralized Rural Electrification (PERD) Project 2006–present 8,248 317 Mini-grids = 26 Concessionaires = 30 Madagascar Mini-grid concessions 2005–present 7,100 237 Mini-grids = 30a Projets de Candidatures Spontanées d’Electrification Concessionaires = 68 Mali 2003–present 78,000 312 Rurale (PCASER) Mini-grids = 250 Concessionaires = 4 Senegal Projets d’Electrification Rurale d’Initiative Locale (ERIL) 2003–present 500 125 Mini-grids = 4 Concessionaires = 1 West Nile Rural Electrification Project 2003–present 6,800 6,800 Mini-grids = 1 Uganda Concessionaires = 5 Small grid extension concessions 2006–present 31,600 6,320 Mini-grids = 5 a. In Madagascar, 200 villages are provided with service by the remaining 30 operators, but the exact number of mini-grids is not known (some mini-grids serve multiple villages). 4 I n c r e asi n g t h e P o t e n tial o f C o n c e ssi o n s t o E x pa n d R u r al El e c t r i f i c ati o n i n S u b - S a h a r a n A f r i c a and serendipitous innovations in solar technology, this model holds What conditions affect success? little promise for replication. Solar home systems will certainly play an increasing role in rural energy provision, but South Africa’s The context of a country’s power sector is crucial in experience suggests that they will do so outside the bounds of a determining the success of a concession concession framework. Particularly important is commitment by the government and major Concessions work well Senegal is the only country in Africa to grant rural zonal conces- power sector institutions. Concessions are conceived, designed, as partnerships between sions, under which governments concede the rights to electrify a and implemented within the context of a country’s power sector, large area or zone. Progress has been painfully slow: Eleven years and that context is crucial in determining their success. If the insti- private and public parties after work on the program began (in 2004), only 3,760 connections tutions that manage the power sector are working well, other things only when the rights and have been provided, two-thirds of them through solar home systems. being equal, it is more likely that concessions will be successful in responsibilities of each The Senegalese experience suggests that this type of concession is achieving their aims. Particularly important is commitment by the are clearly defined, agreed not an attractive model. government and major power sector institutions. A national utility concession may cover a vertically integrated Concessions must also meet six financial and regulatory upon, and adhered to. utility that operates the country’s entire electricity system (genera- conditions: Achieving this clarity tion, transmission, and distribution), or it may encompass only the Financial viability. Investments in large-scale expansion of depends largely on the distribution network in an unbundled system. The primary aim of the grid to rural areas generate economic benefits over the long existence of an adequate most such concessions has been to improve utility performance; term, but for the most part they are not financially viable in the short historically, rural electrification has not been one of their primary to medium term. For this reason, the public sector typically bears regulatory and legal objectives. However, when governments have encouraged such the capital expenditures required to connect rural consumers. The framework. concessions to help expand access to electricity, concessionaires government and regulators must ensure a balance between ade- have responded favorably, with positive results. quate financial returns for the concessionaire and affordability and National utility concessions have been successfully implemented inclusiveness for users for the duration of the concession. Achieving in four countries of the region (Cameroon, Côte d’Ivoire, Gabon, that balance typically requires subsidies and a well-designed tariff and Uganda), where they increased the density of electrification, regime. improved sector performance, and maintained fiscal sustainability. Pre-investment support. The public sector needs to actively Three of the four also increased access to electricity. engage with and support private firms considering becoming conces- In Cameroon, ENEO (and its predecessors) added an average sionaires. Regulators (or other relevant government authorities) need of about 40,000 connections a year and increased the number of to formulate comprehensive investment prospectuses based on grid connections by 570,000, including 190,000 in rural areas. In high-quality sector data to help prospective concessionaires make Gabon, SEEG added roughly 10,000 new connections a year, raising informed decisions. The government should assume some of the the national access rate to 89 percent and the rural access rate to costs of gathering information useful for prospective concessionaires 45 percent. In Uganda, Umeme averaged 30,000 new connections in meeting their due diligence responsibilities and provide timely annually from 2005 to 2014, adding 78,000 in 2014. It increased the responses to requests for additional information. total number of connections by 360,000, about a third of which are Clarity regarding rights and responsibilities. Concessions in rural areas. CIE, in Côte d’Ivoire, is the only one of the four utility work well as partnerships between private and public parties only concessions that has not yet achieved significant increases in rural when the rights and responsibilities of each are clearly defined, access. agreed upon, and adhered to. Achieving this clarity depends largely on the existence of an adequate regulatory and legal framework— one that encompasses public-private partnership laws or a dedi- cated law on concessions. 5 I n c r e asi n g t h e P o t e n tial o f C o n c e ssi o n s t o E x pa n d R u r al El e c t r i f i c ati o n i n S u b - S a h a r a n A f r i c a Detailed contracts with built-in flexibility. Legally binding quickly make unattractive installations more appealing and sustain- contracts should define the rules of the game and key operating able. Advances in renewable energy technology—especially solar parameters. Regulatory or legal processes for changing contractually photovoltaics—have already expanded the options for generating defined terms and parameters in response to evolving economic, power in rural areas. GIS technology will increase the economies technological, or legal conditions should be clearly defined. of scale of mini-grid concessions, making it increasingly possible to Concessions can Protecting contracts from unexpected or arbitrary changes increases charge cost-recovery tariffs. GIS, stand-alone solar home systems, potentially accelerate rural concessionaires’ willingness to invest; the possibility of renegotiation and cost-reducing hybridization of mini-grid generation are making it under specified conditions enables mutually agreeable and optimal easier to plan and manage successful concessions. electrification in ways adaptation to new circumstances. The experience in Sub-Saharan Africa yields several lessons that that neither the public nor Reasonable costs of compliance. The costs of compliance can help policy makers improve the design and implementation of the private partner can should be matched to the nature and size of the concessions being mini-grid concessions: accomplish on its own. implemented. • Improve access to outside financing, particularly longer-term Timely payments and predictable cash flows. Public financing, to provide start-up operators or concessionaires with sector payments to the concessionaire—in the form of initial capital sufficient working capital to maintain affordable tariffs. cost subsidies, recurrent subsidies, or reimbursements—must be • Provide significant subsidies to overcome the lack of ready budgeted for and disbursed in a timely manner. Large or repeated financing and the limited willingness and ability of many rural deviations from expected cash flows will sap the confidence of residents to pay. private partners and discourage further investment. • Implement tariffs that promote financial viability and allow mini-grid operators to adjust prices as needed, through tariff What role can concessions play in the future? hikes or recurrent subsidies, to ensure that concessions meet the risk-reward requirements of potential investors. If properly structured and incentivized, concessions • Develop a regulatory transition path for mini-grids to reach utility can provide a legal structure for effective public- scale and connect to the national grid. private partnerships in the electricity sector • Encourage common ownership/management of several mini- grids, in order to help operators take advantage of economies of When supported by the government, properly incentivized, and scope and reap savings in administrative functions, engineering placed within an appropriate legal framework, concessions can be design, and repetition. a useful tool for attracting private resources, managerial expertise, In national utility concessions, countries need to reach agree- and technical know-how to address the enormous challenge of rural ments that expand rural access without compromising the primary electrification. Indeed, concessions can potentially accelerate rural goal of improving utility performance. To accomplish this, they can electrification in ways that neither the public nor the private partner stipulate agreements or clauses covering potential cost-sharing can accomplish on its own. arrangements between the government and concessionaires within Given an enabling regulatory and policy environment, mini-grid the overall concession framework. Alternatively, the government concessions can provide affordable electricity services to house- can guarantee loans to the concessionaires for grid extensions not holds not yet reached by the national grid. Two developments are expected to immediately contribute to the concessionaire’s short- likely to increase the scope for such concessions. First, the shift term balance sheet. from diesel fuel to renewable energy promises to reduce the cost of operating a mini-grid. Second, new technology—such as pay-as- you-go mechanisms, smart meters, and remote control—should improve their financial viability. Rapid technological innovation can 6 I n c r e asi n g t h e P o t e n tial o f C o n c e ssi o n s t o E x pa n d R u r al El e c t r i f i c ati o n i n S u b - S a h a r a n A f r i c a References Make further connections Kerf, Michel, R. David Gray, Timothy Irwin, Celine Levesque, Robert R. Taylor, and Michael Klein. 1998. “Concessions for Infrastructure: A Guide to Their Design and Award.” World Bank Technical Paper 399, Finance, Private Sector, and Live Wire 2014/20. “Scaling Up Access to Electricity: Infrastructure Network, World Bank, Washington, DC. The Case of Lighting Africa,” by Daniel Murphy and World Bank. 2017. “Rural Electrification Concessions in Africa: What Does Experience Tell Us?” Energy Sector Management Arsh Sharma. Assistance Program, World Bank, Washington, DC. Live Wire 2014/22. “Scaling Up Access to Electricity: World Bank and IEA (International Energy Agency). 2015. Sustainable Energy for All: Progress toward Sustainable Energy The Case of Rwanda,” by Paul Baringanire, Kabir Malik, 2015. Global Tracking Framework Report. Washington, DC: World Bank. and Sudeshna Ghosh Banerjee. Pull quotes [choices to be finalized after layout] Live Wire 2014/33. “Tracking Progress Toward This note is based on a report entitled “Rural Electrification Concessions in Africa: What Does Experience Tell Us?” prepared by the Sustainable Energy for All in Sub-Saharan Africa,” Africa Team of the World Bank’s Energy and Extractives Global Practice with the support of AFREA and the Energy Sector Management by Elisa Portale and Joeri de Wit. Assistance Program. The authors would like to thank the other members of the report team: Kabir Malik, David Vilar, and Mitsunori Motohashi, as well as consultants Subodh Mathur and Castalia, Ltd. The authors alone  are responsible for the content. Live Wire 2015/42. “The Kribi Gas Power Project: Private, Local-Currency Financing Made Possible through an IDA Guarantee,” by Clara Alvarez and Teuta Kaçaniku. Live Wire 2015/47. “Kenya: First Commercial Financing for Power Plants Made Possible through a Series of IDA Guarantees,” by Teuta Kaçaniku and Karina Izaguirre-Bradley. Live Wire 2015/51. “Scaling Up Access to Electricity: Emerging Best Practices for Mini-Grid Regulation,” by Chris Greacen, Stephanie Nsom, and Dana Rysankova. Live Wire 2015/52. “Private Sector Participation in Transmission Systems: Making It Work,” by Pedro E. Sanchez and Samuel Oguah. Live Wire 2016/61. “Rooftop Solar in Maldives: A World Bank Guarantee and SREP Facilitate Private Investment in Clean and Affordable Energy,” by Sandeep Kohli and Arnaud Braud. Live Wire 2017/72. “What Drives the Price of Solar Photovoltaic Electricity in Developing Countries?” by Zuzana Dobrotkova, Pierre Audinet, and Gevorg Sargsyan. Get Connected to Live Wire Live Wires are designed for easy reading on the screen and for downloading The Live Wire series of online knowledge notes is an initiative of the World Bank Group’s Energy and self-printing in color or “Live Wire is designed and Extractives Global Practice, reflecting the emphasis on knowledge management and solu- black and white. tions-oriented knowledge that is emerging from the ongoing change process within the Bank for practitioners inside Group. For World Bank employees: and outside the Bank. 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Once a year, the Energy and Extractives Global Practice takes stock of all notes that appeared, reviewing their quality and identifying priority areas to be covered in the following year’s pipeline. Please visit our Live Wire web page for updates: http://www.worldbank.org/energy/livewire e Pa c i f i c 2014/28 ainable energy for all in easT asia and Th 1 Tracking Progress Toward Providing susT TIVES GLOBAL PRACTICE A KNOWLEDGE NOTE SERIES FOR THE ENERGY & EXTRAC THE BOTTOM LINE Tracking Progress Toward Providing Sustainable Energy where does the region stand on the quest for sustainable for All in East Asia and the Pacific 2014/29 and cenTral asia energy for all? in 2010, eaP easTern euroPe sT ainable en ergy for all in databases—technical measures. This note is based on that frame- g su v i d i n had an electrification rate of Why is this important? ess Toward Pro work (World Bank 2014). SE4ALL will publish an updated version of 1 Tracking Progr 95 percent, and 52 percent of the population had access Tracking regional trends is critical to monitoring the GTF in 2015. to nonsolid fuel for cooking. the progress of the Sustainable Energy for All The primary indicators and data sources that the GTF uses to track progress toward the three SE4ALL goals are summarized below. consumption of renewable (SE4ALL) initiative C T I V E S G L O B A L P R A C T I C E ENERGY & EXTRA • Energy access. Access to modern energy services is measured T E S E R I E S F O R T H EIn declaring 2012 the “International Year of Sustainable Energy for energy decreased overall A KNO W L E D G E N Oand 2010, though by the percentage of the population with an electricity between 1990 All,” the UN General Assembly established three objectives to be connection and the percentage of the population with access Energy modern forms grew rapidly. d Providing Sustainable accomplished by 2030: to ensure universal access to modern energy energy intensity levels are high to nonsolid fuels.2 These data are collected using household Tracking Progress Towar services,1 to double the 2010 share of renewable energy in the global surveys and reported in the World Bank’s Global Electrification but declining rapidly. overall THE BOTTOM LINE energy mix, and to double the global rate of improvement in energy e and Central Asia trends are positive, but bold Database and the World Health Organization’s Household Energy for All in Eastern Europ efficiency relative to the period 1990–2010 (SE4ALL 2012). stand policy measures will be required where does the region setting Database. The SE4ALL objectives are global, with individual countries on that frame- on the quest for sustainable to sustain progress. is based share of renewable energy in the their own national targets databases— technical in a measures. way that is Thisconsistent with the overall of • Renewable energy. The note version energy for all? The region SE4ALL will publish an updated their ability energy mix is measured by the percentage of total final energy to Why is this important ? spirit of the work initiative. (World Bank Because2014). countries differ greatly in has near-universal access consumption that is derived from renewable energy resources. of trends is critical to monitoring to pursue thetheGTF in 2015. three objectives, some will make more rapid progress GTF uses to Data used to calculate this indicator are obtained from energy electricity, and 93 percent Tracking regional othersindicators primary will excel and data sources that elsewhere, depending on their the while the population has access le Energy for All in one areaThe goals are summarized below. balances published by the International Energy Agency and the the progress of the Sustainab respective track starting progress pointstowardand the three SE4ALL comparative advantages as well as on services is measured to nonsolid fuel for cooking. access. Accessthat they modern to are able to energy marshal. United Nations. despite relatively abundant (SE4ALL) initiative the resources and support Energy with an electricity connection Elisa Portale is an l Year of Sustainable Energy for To sustain percentage of by the momentum forthe the population achievement of the SE4ALL 2• Energy efficiency. The rate of improvement of energy efficiency hydropower, the share In declaring 2012 the “Internationa energy economist in with access to nonsolid fuels. three global objectives objectives, andathe means of charting percentage of the population global progress to 2030 is needed. is approximated by the compound annual growth rate (CAGR) of renewables in energy All,” the UN General Assembly established the Energy Sector surveys and reported access to modern universalAssistance The World TheseBank and data are the collected International using household Energy Agency led a consor- of energy intensity, where energy intensity is the ratio of total consumption has remained to be accomplished by 2030: to ensure Management Database and the World of theenergy intium of 15 renewable international in the World Bank’s Global agencies toElectrification establish the SE4ALL Global primary energy consumption to gross domestic product (GDP) energy the 2010 share of Program (ESMAP) relatively low. very high energy services, to double Database. measured in purchasing power parity (PPP) terms. Data used to 1 t ’s Household provides Energy a system for regular World Bank’s Energy the global rate of improvemen and Extractives Tracking Framework Health (GTF), which Organization in the energy intensity levels have come and to double the global energy mix, Global Practice. (SE4ALL 2012). based on energy. of renewable The sharepractical, rigorous—yet energy given available calculate energy intensity are obtained from energy balances to the period 1990–2010 global reporting, Renewable down rapidly. The big questions in energy efficiency relative setting by the percentage of total final energy consumption published by the International Energy Agency and the United evolve Joeri withde Wit is an countries individual mix is measured Data used to are how renewables will The SE4ALL objectives are global, economist in with the overall from renewable energy when every resources. person on the planet has access Nations. picks up a way energy that is consistent 1 The universal derived that isaccess goal will be achieved balances published when energy demand in from energy their own national targets through electricity, clean cooking fuels, clean heating fuels, rates the Bank’s Energy and countries differ greatly in their ability calculate this indicator are obtained to modern energy services provided productive use and community services. The term “modern solutions” cookingNations. again and whether recent spirit of the initiative. Because Extractives Global rapid progress and energy for Energy Agency and the United liquefied petroleum gas), 2 Solid fuels are defined to include both traditional biomass (wood, charcoal, agricultural will make more by the refers to solutions International that involve electricity or gaseous fuels (including is pellets and briquettes), and of decline in energy intensity some t of those of efficiency energy and forest residues, dung, and so on), processed biomass (such as to pursue the three objectives, Practice. depending on their or solid/liquid fuels paired with Energy efficiency. The rate stoves exhibiting of overall improvemen emissions rates at or near other solid fuels (such as coal and lignite). will excel elsewhere, rate (CAGR) of energy will continue. in one area while others liquefied petroleum gas (www.sustainableenergyforall.org). annual growth as well as on approximated by the compound and comparative advantages is the ratio of total primary energy respective starting points marshal. where energy intensity that they are able to intensity, measured in purchas- the resources and support domestic product (GDP) for the achievement of the SE4ALL consumption to gross calculate energy intensity Elisa Portale is an To sustain momentum terms. Data used to charting global progress to 2030 is needed. ing power parity (PPP) the International energy economist in objectives, a means of balances published by the Energy Sector International Energy Agency led a consor- are obtained from energy The World Bank and the SE4ALL Global Energy Agency and the United Nations. Management Assistance agencies to establish the the GTF to provide a regional and tium of 15 international for regular This note uses data from Program (ESMAP) of the which provides a system for Eastern Tracking Framework (GTF), the three pillars of SE4ALL World Bank’s Energy and Extractives on rigorous—yet practical, given available country perspective on Global Practice. global reporting, based has access Joeri de Wit is an will be achieved when every person on the planet The universal access goal heating fuels, clean cooking fuels, clean energy economist in 1 agricultural provided through electricity, biomass (wood, charcoal, to modern energy services The term “modern cooking solutions” to include both traditional and briquettes), and Solid fuels are defined the Bank’s Energy and use and community services. biomass (such as pellets 2 and energy for productive petroleum gas), and so on), processed fuels (including liquefied and forest residues, dung, involve electricity or gaseous at or near those of Extractives Global refers to solutions that overall emissions rates other solid fuels (such as coal and lignite). with stoves exhibiting Practice. or solid/liquid fuels paired (www.sustainableenergyforall.org). liquefied petroleum gas Contribute to If you can’t spare the time to contribute to Live Wire, but have an idea for a topic, or case we should cover, let us know! 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This note is databases—technical updated version of energy for all? The region SE4ALL will publish an has near-universal access to WhyD is this important? ERGY PRACTICE work (World Bank 2014). E G E N O T E S E R I E S F O R T H E E N to of A K N O W L is critical monitoring the GTF in 2015. that the GTF uses to electricity, and 93 percent Tracking regional trends for All The primary indicators and data sources below. goals are summarized the population has access the progres s of the Sustainable Energy progress toward the three SE4ALL Understanding CO Emissions from the Global Energy Sector nonsolid fuel for cooking. track is measured to modern energy services THE BOTTOM LINE to Your Name Here t (SE4ALL) initiativ e Energy access. Access connection despite relatively abundan 2 population with an electricity the share “Internat ional Year of Sustainable Energy for by the percentage of the access to nonsolid fuels.2 hydropow the energy sector contributes er, In declaring 2012 the the population with objectives and the percentage of of renewables in energy established three global and reported about 40 percent of global All,” the UN General Assembly access to modern using household surveys Why is this issue important? 2030: to ensure universal These data are collected and the World Become an author has remained emissions of CO2. three- consumption to be accomplished by in in the World Bank’s Global Electrification Database high energy double the 2010 knowledge share of renewable energy of the Database. relatively low. very Mitigating climate change energy requires services, to 1 quarters of those emissions ent Household Energy rate of improvem global Figure 1. CO2 emissions Health Organiza Figure tion’s 2. energy-related CO2 energy come from six major intensity levels have come energy mix, and to double the share of renewable energy in the of CO s2 emissions sources the global 0 (SE4ALL 2012). Renewab le energy. The question to the period 1990–201 by sector emissions by country consumption down rapidly. The big economies. although coal-fired in energy efficiency relative setting d by the percenta ge of total final energy of Live Wire and countries global, with individual mix is measure LICs evolve les will opportunities to cut emissions of greenhouse aregases used to plants account for just are how renewab Identifying The SE4ALL objectives le energy resources. Data 0.5% picks up understanding of the main sources ofin those a way that is consistent with emis- the overall that is derived from renewab balances published 40 percent of world energy when energy demand requires a clear their own national targets in their ability Other this indicator are obtained from energy 80 percent of differ greatly Residential calculate production, they were again and whether Carbonrates sions.recent dioxide (CO2) accounts for more than spirit of the initiative. Because countries 6% sectors Other MICs Agency and the United Nations. will make more rapid progress by the International Energy China 10% 15% intensity gas emissions globally, 1 primarily from the burning s, some efficiency is contribute to your responsible for more than of decline in energy total greenhouse to pursue the three objective on their Other HICs . The rate of improvement of energy energy sector—defined toexcel elsewhere, depending include Energy efficiency 30% growth rate (CAGR) of energy will continue. of fossil fuels (IFCC 2007). The will 8% in one area while others by the compound annual Energy 70 percent of energy-sector as well as on 41% approxim and heat generation—contributed and compara tive advantages 41 ated Japan 4% energy the ratio of total primary Industry emissions in 2010. despite fuels consumed for electricity respective starting points 20% Russia energy intensity is of global CO emissions in 2010 (figure 1). Energy-related that they are able to marshal. intensity, where measure d in purchas- improvements in some percent 2 the resources and support 7% USA product (GDP) gross domestic practice and career! an at the point of combustion make up the m bulk for the such of achievem ent of the SE4ALL Other consumption to India 19% calculate energy intensity countries, the global CO2 CO Elisa 2 emissions Portale is To sustain momentu transport Road 7% EU terms. Data used to andin are generated by the burning of fossil is needed. global progress to 2030 6% transport fuels, industrial ing power parity (PPP) the International economist objectives, a means of charting balances published by emissions 11% emission factor for energy energy 16% EnergyandSector nonrenewable municipal waste to generate nal Energy Agency led electricity Internatio a consor- are obtained from energy The World Bank and the the waste, generation has hardly changed United Nations. ent Assistance venting and leakage to establish the emissions SE4ALL Global Energy Agency and the sector at the point and over the last 20 years. and heat. Black carbon and methane Managem tium of 15 international agencies Notes: Energy-related CO2 emissions are CO2 emissions from the energy from the GTF to provide a regional of the for regular This note usesanddata domestic provides a system bunkers, Program (ESMAP) presented in this note. of combustion. Other Transport includes international marine aviation for Eastern are not included in the analysis and Extractives Tracking Framework (GTF), which given aviation and available navigation, Other Sectors rail and pipeline transport; perspect include ive on the three pillars of SE4ALL commercial/public World Bank’s Energy on rigorous—yet practical, country and heat genera- global reporting, based services, agriculture/forestry, fishing, energy industries other than electricity Global Practice. not specified elsewhere; Energy = fuels consumed for electricity and Where do emissions come from? tion, and other emissions as has in the opening paragraph. HIC, MIC, and LIC refer to high-, middle-, access Joeri de Wit is an will be achieved when on the planet heat generation, every person defined The universal access goal of countries heating fuels, energy economistare Emissions concentrated in 1 in a handful to modern energy services provided through electricity, fuels, clean and low-income clean cooking countries. cooking solutions” to include both traditional biomass (wood, charcoal, agricultural The term “modern Source: IEA 2012a. Solid fuels are defined and briquettes), and the Bank’s Energy and use and community services. biomass (such as pellets 2 and come primarily from burning and energy coal for productive that involve electricity or gaseous fuels (including liquefied petroleum gas), near those of and forest residues, dung, and so on), processed Vivien Foster is sector Extractives Global refers to solutions overall emissions rates at or other solid fuels (such as coal and lignite). with stoves exhibiting or solid/liquid fuels paired emissions closely manager for the Sus- The geographical pattern of energy-related CO Practice. gas 2(www.sustainableenergy forall.org). liquefied petroleum middle-income countries, and only 0.5 percent by all low-income tainable Energy Depart- mirrors the distribution of energy consumption (figure 2). In 2010, ment at the World Bank countries put together. almost half of all such emissions were associated with the two (vfoster@worldbank.org). Coal is, by far, the largest source of energy-related CO2 emissions largest global energy consumers, and more than three-quarters globally, accounting for more than 70 percent of the total (figure 3). Daron Bedrosyan were associated with the top six emitting countries. Of the remaining works for London This reflects both the widespread use of coal to generate electrical energy-related CO2 emissions, about 8 percent were contributed Economics in Toronto. power, as well as the exceptionally high CO2 intensity of coal-fired by other high-income countries, another 15 percent by other Previously, he was an power (figure 4). Per unit of energy produced, coal emits significantly energy analyst with the more CO emissions than oil and more than twice as much as natural 2 World Bank’s Energy Practice. Gas Inventory 1 United Nations Framework Convention on Climate Change, Greenhouse 0.php gas. Data—Comparisons By Gas (database). http://unfccc.int/ghg_data/items/380