RISE RISE 2022 REGULATORY INDICATORS FOR SUSTAINABLE ENERGY BUILDING RESILIENCE ABOUT ESMAP The Energy Sector Management Assistance Program (ESMAP) is a partnership between the World Bank and 24 partners to help low- and middle-income countries reduce poverty and boost growth through sustainable energy solutions. ESMAP’s analytical and advisory services are fully integrated within the World Bank’s country financing and policy dialogue in the energy sector. Through the World Bank Group (WBG), ESMAP works to accelerate the energy transition required to achieve Sustainable Development Goal 7 (SDG 7) to ensure access to affordable, reliable, sustainable, and modern energy for all. It helps to shape WBG strategies and programs to achieve the WBG Climate Change Action Plan targets. 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RISE 2022 RISE REGULATORY INDICATORS FOR SUSTAINABLE ENERGY BUILDING RESILIENCE Energy Efficiency Highlights: Lack of Improvement Amidst Energy Demand ii TABLE OF CONTENTS V ACRONYMS AND ABBREVIATIONS VI ACKNOWLEDGMENTS VII RISE BY THE NUMBERS 1 KEY MESSAGES 3 EXECUTIVE SUMMARY 6 WHAT IS RISE: METHODOLOGY AND UPDATES 9 GLOBAL DEVELOPMENTS SINCE RISE 2020 16 ELECTRICITY ACCESS HIGHLIGHTS: CONTINUED IMPROVEMENT OVER THE PAST TWO YEARS DESPITE EXTERNAL ECONOMIC SHOCKS 28 CLEAN COOKING HIGHLIGHTS: SLOW GROWTH AFTER A DECADE OF SUSTAINED PROGRESS 36 RENEWABLE ENERGY HIGHLIGHTS: MARKET MATURITY IS EVIDENT IN RECENT POLICY TRENDS 46 ENERGY EFFICIENCY HIGHLIGHTS: LACK OF IMPROVEMENT AMIDST ENERGY DEMAND 55 REFERENCES RISE 2022 iii ACRONYMS AND ABBREVIATIONS AfDB African Development Bank DRC Democratic Republic of the Congo EAP East Asia & Pacific ERI Electricity Regulatory Index FCV Fragility, Conflict & Violence GDP Gross Domestic Product GERI Global Electricity Regulatory Index GNI Gross National Income HVAC Heating, Ventilation, and Air Conditioning IDCOL Infrastructure Development Company Limited IEA International Energy Agency IRENA International Renewable Energy Agency LAC Latin America & Caribbean Lao PDR Lao People’s Democratic Republic LPG Liquefied Petroleum Gas MENA Middle East and North Africa NGOs Non-government organizations OECD Organization for Economic Co-operation and Development PV Photovoltaics RISE Regulatory Indicators for Sustainable Energy RPSR Rethinking Power Sector Reform SA South Asia SSA Sub-Saharan Africa SDG 7 Sustainable Development Goal 7 UNSD United Nations Statistics Division WB World Bank WHO World Health Organization RISE 2022 v Acknowledgments ACKNOWLEDGMENTS T he Regulatory Indicators for Sustainable Energy and Extractives Global Practice, which contributed to the (RISE) report produced by the Energy and validation of information and data, country by country. Extractives Global Practice of the World Bank The following individuals provided valuable contri- Group. It benefited from the support and guidance butions to the report: Jas Singh, Raihan Elahi, Mirlan of Energy Sector Management Assistance Program Aldayarov, Yabei Zhang, Christophe de Gouvello, Jon (ESMAP) Practice Manager Gabriela Elizondo Azuela Exel, Alisha Pinto, Tatia Lemondzhava, Ashish Shrestha, and Infrastructure Chief Economist Vivien Foster. RISE Chris Greacen, James Knuckles, Jevgenijs Steinbuks, was managed by a core team led by Elisa Portale and Clara Galeazzi, Mumba Ngulube, Katharina Gassner, comprising Daron Bedrosyan, Muna Abucar Osman, Almudena Mateos Merino, Sharmila Bellur, Esra Deniz Jiyun Park, Grayson Clapp, and Shekhar Sharma. Bozkir, Shraddha Suresh, Elcin Akcura, Victor Loshka, and Tatyana Kramanskaya. The core team also received valuable support from H. Stephen Halloway, Juliette Besnard, Aya Qari, and Tigran RISE is underpinned by individual data collection Parvanyan at various stages of the project. efforts in each of the 140 countries covered. The full list of those who provided information in each country The financial support of ESMAP is gratefully acknowl- is on the RISE website (http://rise.worldbank.org). The edged. ESMAP is a partnership between the World team would like to particularly recognize the project Bank and 24 partners to help low- and middle-income managers of the firms that led data collection activ- countries reduce poverty and boost growth through ities across multiple countries: Alexander LaBua and sustainable energy solutions. ESMAP’s analytical and Sylvana Bohrt (Greenmax Capital Advisors); Alexandros advisory services are fully integrated within the World Grivas (Stantec); Akram Al Mohamadi, Sara Ibrahim, Bank’s country financing and policy dialogue in the and Maged Mahmoud (Regional Centre for Renewable energy sector. Through the World Bank Group, ESMAP Energy and Energy Efficiency); and Sanjay Dube and works to accelerate the energy transition required to Sonia Shukla (International Institute of Energy Conser- achieve Sustainable Development Goal 7 (SDG7) to vation). ensure access to affordable, reliable, sustainable and modern energy for all. It helps to Qshape the Bank An editorial and design team comprising Duina Reyes, Group’s strategies and programs to achieve its Climate Talar Manoukian, and Mary Anderson raised the quality Change Action Plan targets. and visual presentation of the final report. The online platform was originally developed by K. S. Sreejith, R. The team is grateful for the constructive feedback Narayanan, Rony George, and Ram Prasad of Advanced provided by peer reviewers Ani Balabanyan, Sudeshna Software Systems and is now managed by Derilinx. The Ghosh Banerjee, and Vivien Foster. Many World Bank communications process was led by Lucie Cecile Blythe colleagues, and external partners offered formal and with input and guidance on publication from Marjorie informal guidance during preparation of the report. The Araya and Heather Austin. team is also grateful to the staff of World Bank’s Energy vi RISE BY THE NUMBERS RISE’s 4th edition covers RISE analyzes 12 years of data on 30 indicators 140 economies that now account for across 4 pillars: electricity access, clean cooking, renewable energy, and energy efficiency 98 percent of the world’s population In 2019, Global Progress on Utility Sustainable-Energy Creditworthiness 60 countries 80 percent of Regulation: Lags Behind: had built advanced policy countries Global Average Global Average frameworks; by the end of 2021, 68 countries had surveyed globally improved 2017: 52/100 2019: 34/100 done so their overall RISE 2019: 57/100 2021: 30/100 scores 2021: 60/100 Mechanisms of Support During Covid-19, Globally: Regional Differences in Covid-19 Support: % of Surveyed Countries Most Prevalent Mechanism and % of Countries in the Region 41% mechanisms for end users EAP: Financial support to utilities, mini grids and off-grid companies (48%) 39% financial support to service LAC: Electrification of, and access to, public providers institutions (60%) S. Asia: Financial support to end users (38%) and 44% electrification of public utilities, mini grids, and off-grid companies (38%) institutions SSA: Financial support to end users (37%) Evolution of RISE Scores 2021 Regional 2021 Differences Across RISE Pillars for for Electricity Access Differences in RISE Electricity Access Global Average Scores for Electricity Global Averages Access 2010: 16/100 Regional Averages Electrification planning: 58/100 2017: 36/100 LAC: 54/100 Scope of electrification plan: 51/100 2019: 48/100 SSA: 54/100 Grid electrification: 52/100 2021: 53/100 EAP: 53/100 Mini grids: 45/100 S. Asia: 50/100 Off-grid systems: 57/100 Consumer affordability: 71/100 Utility transparency: 68/100 Utility creditworthiness: 30/100 RISE 2022 vii Acknowledgments Evolution of RISE Scores 2021 Regional Differences 2021 Differences Across RISE Pillars for for Clean Cooking in RISE Scores for Clean Clean Cooking Global Average Cooking Global Averages Regional Averages 2010: 6/100 47/100 Clean Cooking National Plan: LAC: 28/100 2017: 22/100 Scope of planning: 37/100 SSA: 32/100 2019: 27/100 Standards and Labeling: 18/100 EAP: 31/100 2021: 32/100 Financial Incentives: 26/100 S. Asia: 42/100 Evolution of RISE Scores 2021 Regional Differences 2021 Differences Across RISE Pillars for Renewable for Renewable Energy in RISE Scores for Energy Global Average Renewable Energy Global Averages Regional Averages 2010: 19/100 Legal framework: 75/100 EAP: 44/100 2017: 45/100 Planning for expansion: 65/100 ECA: 51/100 2019: 51/100 Incentives and regulatory support: 46/100 LAC: 55/100 2021: 55/100 Attributes of incentives: 47/100 MENA: 57/100 Network connection and use: 49/100 OECD: 81/100 Counterparty risk: 54/100 S. Asia: 43/100 Carbon Pricing and monitoring: 51/100 SSA: 44/100 Evolution of RISE Scores 2021 Regional Differences 2021 Differences Across RISE Pillars for for Energy Efficiency in RISE Scores for Energy Energy Efficiency Global Average Efficiency Global Averages Regional Averages 2010: 16/100 73/100 National EE Planning: 2017: 38/100 EAP: 44/100 EE Entities: 70/100 ECA: 49/100 2019: 43/100 51/100 Commercial & Industrial EE Incentives: LAC: 40/100 2021: 46/100 Public Sector EE Incentives: 44/100 MENA: 50/100 Energy Utility EE Incentives: 41/100 OECD: 75/100 Financing Mechanisms: 21/100 S. Asia: 41/100 Performance Standards: 47/100 SSA: 26/100 Energy Labeling: 45/100 Building Energy Codes: 36/100 Transport Sector EE: 33/100 Carbon Pricing & Monitoring: 48/100 Top 5 Countries Making Top 5 Countries Making Top 5 Countries Making Top 5 Countries Fastest Improvements in Fastest Improvements in Fastest Improvements in Making Fastest Electricity Access: Clean Cooking: Renewable Energy: Improvements in 1. Guatemala 1. Rwanda 1. Côte d’Ivoire Energy Efficiency: 2. Nigeria 2. Congo, Dem. Rep 2. Mozambique 1. Côte d’Ivoire 3. Angola 3. Burundi 3. Saudi Arabia 2. Saudi Arabia 4. Honduras 4. Bangladesh 4. Lebanon 3. Chile 5. Kenya 5. Guatemala 5. Vietnam 4. Senegal 5. Zambia viii KEY MESSAGES 1. Content of the fourth edition of the RISE survey 4. A notable exception to these positive trends is and report. Data were collected at the end of 2021, utility creditworthiness, which has deteriorated so the RISE scores reflect important policy trends in across several regions. Policy support for utilities the recent aftermath of the COVID-19 pandemic. is lacking, especially in access-deficit countries, as Major impacts on the energy sector that occurred scores for utility creditworthiness actually regressed during the 2022 calendar year, such as the effects of on average over the past two years—possibly because the war in Ukraine, will not be reflected in the RISE of the impacts of COVID-19. Even among countries 2022 data, but will be captured in the next edition of with universal access to electricity, nearly a quarter RISE which will span the 2022-2023 calendar years. of the surveyed distribution utilities struggled with On the RISE website, users may select the specific substandard performance of creditworthiness. The indicators and timelines they would like to view for global drop in the utility creditworthiness score was subsets of countries or regions. The customization driven largely by the countries in South Asia and feature has been added and refined in the Analytics Sub-Saharan Africa. section of the website over the last two years to enable different types of important analyses that 5. Globally, energy policies on electrification plans, might not necessarily be captured in a high level off-grid access, and utility transparency have summary report. improved the most since 2010, but none of these indicators has reached the green zone in the RISE 2. The global average RISE score across all countries score. Frameworks for the grid and minigrids have and indicators improved consistently, from 57 also advanced steadily in the past decade. Only the in 2019 to 60 in 2021, and all energy pillars have consumer affordability of electricity indicator has shown continued growth since 2019. Global efforts reached the green zone on a global average. Africa’s have focused on developing sustainable energy electrification framework has caught up with policies and regulations in the energy transition. global leader LCR surpassing Asia. In addition, a Recovery efforts for the COVID-19 pandemic have systematic neglect of four key policy areas has held also strengthened access to electricity priorities back their progress over time. These are: financing worldwide. mechanisms for energy efficiency; regulations addressing variability and integration of renew- 3. In addition, all regions saw advances in compre- ables; enforceable standards and labelling for clean hensive policy and regulatory frameworks in the cooking products and fuels; and, transport sector 2019-2021 period, but progress was uneven. All energy efficiency. regions have now improved their average overall scores from the red zone into the yellow zone by 6. Off-grid access policies remain a key priority for the end of 2021, including Sub-Saharan Africa. On the large majority of countries with electricity overall policy development, two regions (Sub-Sa- access deficits. Mini grids and solar home systems haran Africa and Latin America and the Caribbean) are now widely viewed as viable alternatives for made the greatest progress during the 2019-2021 grid extension in targeted geographical areas, cycle, with Ecuador, Kenya, Panama, and Rwanda provided that adequate regulations and incentives having made the leap in scores into the green zone are in place to build an enabling environment to by the end of 2021. attract investments in off-grid solutions. Accord- RISE 2022 1 Executive Summary ingly, development of the off-grid electrification 8. Renewable energy policies demonstrate market framework exceeds that for the main grid in most maturity but still have room for improvement. countries with an electricity access deficit, especially Tax reduction was the most prevalent renewable in Africa. energy fiscal incentive in place in 2021 to attract large-scale corporate investments. Renewable 7. In clean cooking, different regions have advanced technologies have become cost-competitive with at different paces over the past 12 years. Although traditional baseload energy sources over the past the Africa region has the lowest regional average, decade, and many countries have phased out incen- since 2010 it has shown a consistent uptick, albeit tives that compensate renewable energy production. from a lower starting point. On average, South However, 29 countries still score in the red zone, and Asian countries are leading on policy and regulatory renewable energy integration regulations remain frameworks for clean cooking. In three out of four lacking. access-deficit regions—East Asia and Pacific, South Asia, and Sub-Saharan Africa—RISE scores range 9. Energy efficiency policies are not receiving widely from 0 to 79. Among the 35 countries in adequate attention amid unprecedent energy price the Sub-Saharan African region, only Kenya and hikes. Despite little noticeable global improvement Rwanda score in the green zone. in energy efficiency scores between 2019 and 2021, the unprecedented energy crisis now faced in Europe and globally should prompt more countries to recognize the cost-effectiveness of energy efficiency measures in managing energy demand. 2 EXECUTIVE SUMMARY RISE: RIGOROUS, ADAPTIVE, The RISE score is not the only precursor or indicator of SDG7 progress or investment, and measuring AND COMPREHENSIVE the quality and enforcement of policies remains challenging. RISE provides a record of laws, regulations, RISE—Regulatory Indicators for Sustainable Energy— and policies that countries enact to support sustainable is a set of indicators intended for use in comparing the energy. Still, by measuring the level and ambition of policy and regulatory frameworks that countries have policy adoption in countries, the indicators can help put in place to support the achievement of Sustainable policy makers benchmark their own national energy Development Goal 7 (SDG7) on universal access framework against those of regional and global peers. to clean and modern energy. This fourth edition of the index captures policy and regulatory support that enhances sustainable energy in the form of 30 indicators GLOBAL PROGRESS: and 85 subindicators distributed among four pillars: electricity access, clean cooking, renewable energy, and MOVING FORWARD, BUT SLOW energy efficiency. The RISE indicators, scored on a 0–100 AND UNEVEN PACE scale, can be used to compare 140 economies that now account for 98 percent of the world’s population. Cross- Globally, since 2019, the number of countries with pillar comparisons must be nuanced, however, so the advanced policy frameworks for sustainable energy RISE online platform provides an opportunity for deeper has continued to grow, even during the Covid-19 analysis: https://rise.esmap.org. pandemic. Over the past two years, more than 80 percent of countries surveyed globally improved their overall To capture recent changes in the energy sector over the RISE scores. Improvements in off-grid policies, afford- last two years, RISE 2022 has refined the indicators ability, renewable energy planning and target setting, and for all pillars, recalculating the entire time series several energy efficiency incentives were most evident. dating back to 2010 for all countries, to better reflect These initiatives have been embedded in many countries’ recent changes in the energy sector. RISE scores in this COVID-19 recovery plans. Indeed, a new RISE survey edition reflect the status of policies and regulations in module focusing on electricity access policies during the each country in the recent aftermath of the COVID-19 COVID-19 pandemic revealed that many countries in pandemic. Major impacts on the energy sector that each region included considerations in their COVID-19 occurred during the 2022 calendar year, such as the recovery packages to minimize disruptions to electricity effects of the war in Ukraine, however, are not included access, quality, and affordability, for both households and in this edition and will be included in the next edition. public institutions, and most significantly in sub-Saharan Africa. The global economic crisis brought on by the COVID-19 pandemic affected sustainable energy However, the pace of improvement from 2019 to 2021 policies, in both negative and positive ways. In many was slower than during the previous two-year cycle countries where utilities were already under financial of 2017–19, and progress has been uneven. Across all duress, the pandemic exacerbated utilities’ ability to dimensions of sustainable energy, average global scores provide essential services. However, sustainable energy still show room for improvement, particularly in clean policies have now been embedded in recovery stimulus cooking. All regions saw advances in comprehensive packages to help minimize market disruptions in the policy and regulatory frameworks in the 2019-2021 energy sector. period, but progress was uneven. On overall policy RISE 2022 3 Executive Summary development, two regions (Sub-Saharan Africa and Latin RISE score of 54 each in electricity access. In contrast to America and the Caribbean) made the greatest progress other regions, the evolution of the scores in South Asia during the 2019-2021 cycle. Utility creditworthiness, was relatively sluggish because of low scores on the utility in particular, lagged behind despite its importance for creditworthiness indicator, which can be partly explained enabling sustainable energy access. by the fiscal constraints of COVID-19 recovery across regions. ELECTRICITY ACCESS: CONTINUED IMPROVEMENT OVER CLEAN COOKING: THE PAST TWO YEARS DESPITE SLOW GROWTH AFTER A DECADE EXTERNAL ECONOMIC SHOCKS OF SUSTAINED PROGRESS Progress in clean cooking regulatory frameworks Despite a slowdown in the global economy, many slightly increased during the 2019–21 period, but governments have made significant progressed on progress in clean cooking policies nearly flattened in their RISE electricity access scores in 2019–21. Electri- all regions in the period 2019-2021, except in the East fication planning, frameworks for mini grids and off-grid Asia Pacific and Latin America and Caribbean regions. systems, and utility transparency and monitoring were On average, South Asian countries are leading on policy the indicators that mainly contributed to the continued and regulatory frameworks for clean cooking, but only increase in electricity access scores in 2019–21. During India among them scores in the green zone. In three the period, however, the electricity access pillar experi- out of four access-deficit regions—East Asia and Pacific, enced a slower rise than in 2017–19. The average growth South Asia, and Sub-Saharan Africa—RISE scores range rate was 5.8 points per year between 2017 and 2019, but widely from 0 to 79. the pace almost halved in 2019–21, to 2.6 percentage points. Globally, the highest improvements in RISE scores over the last two years have been achieved by Rwanda, As of 2021, more than half of the population without the Democratic Republic of Congo, and Burundi, but access still lived in countries where an enabling none of these countries have managed to improve their policy environment is at the early and middle stages. access to clean cooking rate above 5 percent. Rwanda Although consistent progress has been made since was the only country that improved its clean cooking 2019, 409 million people lacking electrification of the score from the yellow zone into the green zone between surveyed countries, mostly in Sub-Saharan Africa, did 2019 and 2021, while Burundi, Niger, and Nigeria were not yet benefit from plans for advanced policies and the only countries to improve their scores from the red regulations in 2021. On the positive side, the two largest zone to the yellow zone. access-deficit countries—Nigeria and Ethiopia—showed a noteworthy progress and have reached the green zone Among the countries surveyed, 2.4 billion still people in their overall scores between 2019 and 2021, thanks do not have access to clean cooking, yet less than half to the well-established policy and regulatory measures, of them is in countries that now score in the red zone. including electrification planning, frameworks for mini In particular, clean cooking policies tailored to target grids and off-grid systems, and consumer affordability of beneficiaries, ensure quality and provide financial incen- electricity. tives lag behind. Last mile distribution also remains overlooked in the majority of countries surveyed, and Electricity access scored the highest in Sub-Sa- the indicator on financial incentives for suppliers clearly haran Africa and Latin America and the Caribbean, shows more room for improvement, particularly with outpacing the global average in 2021. These two regions respect to end user incentives for low-income consumers. made the greatest advancement in 2019–21, reaching a 4 RENEWABLE ENERGY: improvement took place in Vietnam where modern renewable energy consumption is now 75 percent higher MARKET MATURITY IS EVIDENT IN since 2010 and its RISE RE score increased to 84 in 2021 from only 22 in 2010. RECENT POLICY TRENDS Renewable energy policy and regulation has been ENERGY EFFICIENCY: increasing at a slower pace, with the period from 2019 to 2021 experiencing 33 percent less average annual LACK OF IMPROVEMENT AMIDST growth than the 2017–19 period. Since 2010, only the Legal Framework for Renewable Energy indicator has ENERGY DEMAND achieved an average score in the green zone. Tax Reduc- The energy efficiency pillar, despite overall progress in tions were the most prevalent renewable energy fiscal all regions in the period 2019–21, has experienced a incentive in place in 2021. COVID-19 created economic slower increase compared to 2017–19. Among the 11 downturns, supply chain constraints and prioritization energy efficiency indicators evaluated in RISE, planning shift for governments that may have reduced the growth indicators typically score highest across the 140 countries of Renewable Energy policies and regulation. surveyed worldwide. In terms of end-use sectors, heating and cooling energy efficiency standards were the most Although the OECD region has retained the highest prioritized globally. However, building energy efficiency RISE average score since 2010, each region of devel- measures need more focus on heating and cooling in oping countries has narrowed the gap over the last 12 energy performance. years, with several notable standouts at the country level. Côte d’Ivoire made the most progress of any country Still, all regions successfully increased their adoption between 2019-2021, increasing its renewable energy of policy and regulatory frameworks for energy RISE score 47 points from 11 to 58. Mozambique made efficiency between 2010 and 2021. MENA and Sub-Sa- the second most progress of any country between 2019 haran Africa were the fastest improving regions in the and 2021, increasing its renewable energy RISE score by adoption of efficiency policies between 2019 and 2021, 30 points from 29 to 59. Notable standouts among the with Côte d’Ivoire advancing the most among Sub-Sa- most improved regions include Jordan in the Middle haran Africa countries. Several standout examples among East and North Africa and Ecuador in Latin America low-income countries – including Bangladesh, India, and the Caribbean. Among African countries, Kenya Rwanda, Senegal, Zambia – demonstrate that effective stands out in terms of its improvement in RE policies energy efficiency policies do not require substantial fiscal and corresponding increase in modern renewable energy outlays. consumption. Among Asian countries, a standout RISE 2022 5 What is RISE: Methodology and Updates WHAT IS RISE: METHODOLOGY AND UPDATES R ISE—Regulatory Indicators for Sustainable has begun serious efforts to develop a policy framework Energy—is a set of indicators intended for use but still has room for improvement; and red for the lowest in comparing the policy and regulatory frame- scores (0–33), indicating that policy adoption remains at works that countries have put in place to support an early stage. the achievement of Sustainable Development Goal To capture recent changes in the energy sector over the 7 (SDG7) on universal access to clean and modern last two years, RISE 2022 has refined the indicators energy. This fourth edition of the index captures policy for all pillars, recalculating the entire time series and regulatory support that enhances sustainable dating back to 2010 for all countries. Indicators that energy in the form of 30 indicators distributed among were updated for the RISE 2022 are highlighted in red four pillars: electricity access, clean cooking, renewable in Figure 1. The survey methodology for the electricity energy, and energy efficiency. Each of RISE’s four pillars access pillar now captures more nuances in off-grid rests on a set of indicators (Figure 1). Data for RISE 2022 access, specifically regarding minigrids and stand-alone was collected between September and December 2021, systems. The questionnaire was updated to yield a more therefore RISE scores reflect the status of policies and holistic picture of regulatory incentives for minigrids regulations in each country as of December 31, 2021, and off-grid systems, including targeted approaches to which reflects important policy trends in the recent low-income households. Good practices for developing aftermath of the COVID-19 pandemic. Major impacts on institutional capacity, community engagement, training, the energy sector that occurred during the 2022 calendar and geospatial planning specifically for the fast-ex- year will not be reflected in the RISE 2022 data, but will panding minigrid industry have also been added. For be captured in the next edition of RISE which will span the clean cooking pillar, RISE 2022 has added questions the 2022-2023 calendar years. to evaluate the sources of public and private funding for The RISE indicators, scored on a 0–100 scale, can be good-practice regulatory programs and incentives in used to compare 140 economies that now account each indicator. More specific information on last-mile for 98  percent of the world’s population. A country’s distribution strategy is now being collected, particu- overall score is an average of its scores for the electricity larly for geographically remote and rural areas and for access, renewable energy, and energy efficiency pillars poor segments of the population. Additionally, more (the electricity access and clean cooking pillars are only categories of possible financing incentives for clean- scored for 541 and 552 access-deficit countries, respec- cooking consumers are being considered in the indicator tively). Scores are grouped into three categories based on financing mechanisms. For clean energy indicators, on a “traffic light” system: green for the highest third of the eligible fiscal incentives for renewable energy gener- scores (67–100), indicating a relatively mature policy ation have been updated and expanded, and more environment, albeit with room for improvement; yellow good-practice regulations for building energy efficiency for the middle range (33–67), indicating that the country have been added. 1 Fifty-four countries were surveyed for electricity access in 2021. “Access-deficit” countries refer to those where access rates are under 90 percent or where over 5 million people lack access to electricity. Countries with no electricity access deficit were scored 100. 2 The clean cooking pillar is scored for 55 access-deficit countries (as identified in IEA, IRENA, UNSD, World Bank, and WHO 2021) and is averaged into the overall score for those countries only. 6 FIGURE 1. THE RISE FRAMEWORK: RISE’S SUSTAINABLE ENERGY PILLARS AND CORRESPONDING INDICATORS POLICIES AND REGULATIONS Pillar Indicators • Electrification  • Grid electrification • Framework for • Utility transparency planning framework off-grid systems and monitoring ELECTRICITY ACCESS • Scope of the  • Framework for • Consumer • Utility  electrification minigrids affordability of creditworthiness plan electricity • Clean cooking planning • Standards and labelling CLEAN COOKING • Scope of planning • Financial Iincentives for clean cooking solutions • Legal framework for • Incentives and • Network • Carbon renewable energy regulatory support connection pricing and for renewable energy and use monitoring RENEWABLE ENERGY • Planning for • Attributes of • Counterparty risk renewable energy financial and expansion regulatory incentives • National energy • Incentives and • Minimum energy • Transport sector efficiency mandates: performance energy efficiency planning Public sector standards • Energy efficiency • Incentives and • Energy labeling • Carbon pricing ENERGY entities mandates: Energy system and monitoring EFFICIENCY utility programs • Incentives and • Financing • Building energy mandates: mechanisms for codes Industrial and com- energy efficiency mercial end users Source: World Bank, RISE 2022. Note: Indicators that were updated for the RISE 2022 survey are highlighted in red Measuring the quality and enforcement of policies reflects laws that have been enacted, without making remains challenging. As a result of the aforementioned a judgment on whether they are being implemented. RISE survey updates, the overall stringency of each RISE cannot fully capture the quality of the content of pillar’s questionnaire has increased, and scores from policies and regulations, which is highly context-specific previous RISE reports should not be directly compared and may produce subjective assessments. Some policies with those in previous editions. RISE 2022 has recalcu- may not be completely relevant for all countries given lated scores from previous years (dating back to 2010) country-specific strategies and political choices. according to the most recent questionnaire to facilitate Cross-pillar comparisons must be nuanced, and the historical comparisons and trend analysis. It should be RISE 2022 Summary Report is only a snapshot of select noted that RISE aims to provide a record of legislation, comparisons and analysis. The RISE online platform policies, and strategies prevailing in a country over provides an opportunity for deeper analysis, customizable a specified timeline. As policies and regulations may according to each audience’s interest and focus areas. The exist without being enforced, a country’s RISE score RISE 2022 7 What is RISE: Methodology and Updates indicators included under the four pillars are meant to environment alone is insufficient, however, to attract yield a holistic view of the state of regulation and policy investment or ensure progress toward SDG7. It must making within each pillar. Online, users can also choose be backed by strong institutions, open markets, access to compare specific indicators across different pillars at to finance, an open flow of information, and a strong the global, regional, and national levels throughout the private sector. Nevertheless, RISE can help explain trends data’s entire timeline dating back to 2010. Comparing in sustainable energy investment and SDG7 outcomes. results across pillars reveals differences in the relative By measuring the level and ambition of policy adoption maturity of, say, electricity access versus clean cooking in countries, the indicators can help policy makers or renewable energy versus energy efficiency. The RISE benchmark their own national energy framework online platform also includes a comprehensive library against those of regional and global peers. By providing of policies and regulations on sustainable energy in 140 empirical evidence of the support provided by policy countries. It highlights global, regional, and national frameworks, the RISE database helps countries attract best practices spanning the gamut of sustainable energy investment in their sustainable energy sector. RISE is also policy making and offers regional profiles and country a valuable resource for private investors and developers, policy profiles. Detailed information on the scoring who use the index to carry out due diligence related to methodology is also available on the website (http://rise. new projects, products, and services. RISE scores are esmap.org/). intended to illustrate how close or far a country is from The RISE score is not the only precursor or indicator offering an attractive policy environment. They should of SDG7 progress or investment. RISE is intended to not be construed as investment advice. provide a record of laws, regulations, and policies that Except where otherwise noted, the figures in this report countries enact to support sustainable energy. The policy are based on RISE project data. 8 GLOBAL DEVELOPMENTS SINCE RISE 2020 S ince RISE 2020, the number of countries with Over the past two years, more than 80 percent of advanced policy frameworks for sustainable countries surveyed globally improved their overall energy has continued to grow. As of the end of RISE scores. Côte D’Ivoire and Saudi Arabia were the 2019, 60 countries had built advanced policy frameworks only two countries to improve by over 20 points (figure for sustainable energy into their regulatory systems. By 3). Improvements in off-grid policies, affordability, the end of 2021, 68 countries had done so, including renewable energy planning and target setting, and several score improvements into the green zone from many energy efficiency incentives were most evident over the emerging markets and developing economies such as past two years. These initiatives have been embedded in Bosnia and Herzegovina, Ecuador, Kenya, Rwanda, and many countries’ COVID-19 recovery plans to improve Saudi Arabia (figure 2). energy independence and minimize energy costs for populations struggling with the pandemic’s economic impacts. ≤33 33–67 FIGURE 2. RISE SCORES WORLDWIDE IN 2021 ≥67 ≤33 33