2015/44 95795 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 Mapping Smart-Grid Modernization in Power Distribution Systems Grid modernization offers significant benefits to the quality and efficiency of service delivery in all grids, irrespective Even in underdeveloped grids, equipment is replaced either of the current level of Why is this issue important? routinely or when equipment fails. By following a clearly defined modernization. These benefits Regardless of a country’s level of development, grid road map for grid modernization, cost-effective smart-grid elements include improved operational modernization can help utilities improve service that yield the highest benefits can be used for these necessary efficiency (reduced losses, replacements. lower energy consumption, Why should countries where 75 percent of the population lacks Smart elements in a grid will differ greatly depending on the state etc.), reduced electrical demand access to electricity consider a strategy for deploying smart grids? of the power system and the country context. A smart-grid roadmap during peak load periods, Should they not focus first on increasing access? And would it not be will therefore vary considerably across countries, but smart technol- improved service reliability, better for a utility grappling with debt, power theft, and high technical ogy is essential for successful modernization of any grid. and ability to accommodate losses to focus on getting the basics right rather than looking at distributed generating defining a grid modernization strategy? The answer is that smart grids are an essential element in What are smart grids? resources without adversely impacting system stability. improving efficiency that is relevant to utilities in all countries—from Smart grids are conventional grids enhanced advanced utilities with robust grids to those whose grids barely keep Benefits of grid modernization by technology to enable digital communication also include improved asset up with demand. This note provides practical guidance for stakehold- ers in defining smart-grid goals, identifying priorities, and structuring among grid components and to increase utilization, allowing operators to squeeze more capacity out of investment plans. While most of these principles apply to any part operational flexibility existing assets and improving of the electricity grid (transmission, distribution, off-grid), the note There is no common definition of a smart grid. Indeed, it is usually and workforce productivity. focuses on the distribution network. defined to reflect the specific requirements and needs of the Modernizing the grid can help utilities address issues in service implementing utility, because a smart solution for one utility may not delivery such as reducing technical and commercial losses, pro- be smart enough for another, depending on its level of development. Samuel Oguah is an moting energy conservation, managing peak demand, improving A grid that intends to integrate a large share of renewables will energy specialist in the reliability, integrating high levels of distributed generation (such as require different modernization steps from a grid that plans simply to World Bank’s Energy and mini-grids and power sources with variable output), and accommo- Extractives Global improve its reliability (see Figure 1). dating the rising use of electric vehicles (figure 1). To harness these Practice. A simplified way to visualize a smart grid is to think of it as having benefits, it is essential that well-designed plans be developed for Debabrata four main layers that can be combined to create features to improve the implementation of smart-grid goals and objectives (Madrigal and Chattopadhyay is a the grid’s ability to achieve defined goals: Uluski 2015). senior energy specialist in the same practice. 2 M a p p i n g S m a r t- G r i d M o d e r n i z a t i o n i n P o w e r D i st r i b u t i o n S y st e ms Figure 1. Reasons for developing smart grids cited by 66 power • “Hard” infrastructure. This comprises all the physical industry participants in 42 countries components of the grid, such as the generation, transmission, and distribution assets that produce and deliver energy to Enabling customer choice and participation consumers. New/improved services for customers Improve revenue collection and assurance • Telecommunications. This includes all communication services “A grid that intends to Welfare of the community (for example, wide area networks and field area networks utilizing Environmental concerns optical fiber, leased lines, wireless connections, and so on) that integrate a large share of Government incentives enable applications to monitor, protect, and control the grid. renewables will require Regulatory compliance Concerns with aging workforce • Data. This includes systems necessary to ensure proper different modernization Reducing human factors/error processing, utilization, and analysis of data. steps from a grid that Labor saving • Applications. These are the tools and software technologies Reducing operating and maintenance costs plans simply to improve its Concerns with aging infrastructure that use and process information collected from the grid for reliability.” Aging infrastructure/better asset utilization monitoring and protecting the grid, and for controlling the hard Constraints for network/grid improvements infrastructure layer. Significant increase in energy demand Power quality improvement Reducing technical losses Incorporating technology into conventional grids to enable digital Reliability improvements communication among grid components can improve operational Improve power system restoration flexibility and performance in various ways. For example, in some Energy supply constraints/security Enhanced resiliency to climate related incidents grids, utilities have to send workers out to open or close circuit Micro grid developments breakers, read meters, measure voltage, and gather other useful Integration of distributed energy resource data. The components of a smart grid, by contrast, are equipped with New technology advances/leapfrogging integrated sensors to carry data and allow two-way communication, Increase in electric and hybrid vehicles Improve enterprise solution coordination making it possible to remotely operate equipment or retrieve status Energy efficiency information at the utility’s operations center. Integration of renewable energy Smart grids can therefore be seen as a conceptual goal whose Demand (Load) response & management achievement requires continuous modernization through the use Technology development and export 0 of conventional and advanced digital technologies. However, they 0 10 20 30 40 50 60 70 80 90 are not the panacea for all challenges faced by utilities. Although Percentage of survey respondents who identified issue as a significant reason they enable energy sector objectives, they should not be viewed in for developing a smart grid isolation. For example, an overall energy goal might be to reduce fossil-fuel consumption through the introduction of renewable Source: ESTA Survey on International Smart Grid Drivers, undertaken for the U.S. Department of Energy, http://www.estainternational.com/ESTA/Projects.html. energy (such as solar or wind energy) in the power sector. The inte- gration of large shares of renewables requires better grids equipped to deal with rapid system changes. Without these transformations, the grid will be a barrier to achieving sector goals. Put differently, the selection of smart components for the grid must be driven by the higher-level policy goals and should not be viewed entirely as a matter of technology enhancement (figure 2). 3 M a p p i n g S m a r t- G r i d M o d e r n i z a t i o n i n P o w e r D i st r i b u t i o n S y st e ms Figure 2. Smart grids in the overall electricity sector costs. Regulations should provide financial incentives to the utility to perform well in delivering energy efficiency profitably as a core part Sectorwide policies of its business rather than as a marginal activity. Finally, regulations Power sector goals may have to include a mechanism to estimate and compensate for Increase energy Reduce fuel efficiency and the the revenue margin that may be lost in a successful energy-efficiency share of renewable Smart-grid road map consumption program. “The selection of smart sources Monitoring, awareness, Smarter Systems going through reforms or that have recently been components for the grid Ensure Expand forecasting, and metering, restructured to unbundle generation, transmission, and distribution security and intelligent generation and integration of must be driven by the reliability grid capacity renewables restoration may find it difficult to capture the systemwide costs and benefits of supply higher-level policy goals of grid modernization. For instance, some advanced smart-grid and should not be viewed programs may lead to significant reductions in peak demand, which Source: World Bank. would have the effect of reducing the overall cost of supply and entirely as a matter of obviate the need for unprofitable investments in peaking generation. technology enhancement.” In so doing, however, the programs may cause retail companies What are the challenges in grid modernization? to fear losing a significant part of their revenue. In such a scenario, Soft measures pose a greater challenge more strategic cooperation is required between various systems and operators, as well as special regulatory approaches to help service than hard measures providers stay viable despite reductions in energy sales (IEA 2011). The most significant challenge to the deployment of smart grids Another challenge is the ability of power system operators to is arguably the soft measures such as the legal and regulatory work with modern grids. System operators who are experienced in framework—the enabling environment—rather than the hard ones working primarily with manual, paper-driven business processes acquired through direct investments in infrastructure. The degree of may have difficulty adapting to a computer-assisted system. As importance of the enabling environment to the implementation of a an example, smart components pose the risk of data overload. modernization strategy will depend on the current state of the grid Intelligent electronic devices (IEDs) are able to supply a wealth of and the technology applications to be deployed. Regulations need to information pertaining to the loading, performance, and operating ensure, among other things, that (i) companies have the right incen- status of each distribution element. The volume of information may tives to pursue technologies that improve grid performance, (ii) the lead operators to ignore information or, in the worst case, confuse technologies introduced meet or exceed technical service delivery operators into making incorrect operating decisions based on their requirements, and (iii) those technologies can communicate with assessment of the available information. To prevent such problems, one another, allowing network modernization to progress smoothly capacity building should be considered as an integral part of a smart- without being tied to particular vendors. grid strategy. Regulations are also needed to ensure the proper funding of Additionally, the introduction of communication systems modernization strategies. Depending again on the state of the grid, introduces the risk of cyber attacks. Unauthorized access to sensitive it may be necessary to institute cost-recovery mechanisms and data and to the control center could disrupt the supply of power to require the use of cost-efficiency principles designed to secure to customers, damage expensive energized high-voltage power the long-term benefits of modernization, rather than to pursue apparatus, and pose a safety hazard for the field workforce. narrowly focused projects designed to immediately reduce capital 4 M a p p i n g S m a r t- G r i d M o d e r n i z a t i o n i n P o w e r D i st r i b u t i o n S y st e ms How do we meet these challenges? cyber security in power systems. For example, the Joint Research Council of the European Commission has initiated the European A detailed smart-grid road map is fundamental to Network for the Security of Control and Real-Time Systems (ESCoRTS) cost-effective modernization (IEA 2011). The first step in reaping the untapped potential of modernizing the With regard to distribution, the road map should reflect the state grid is to develop a comprehensive road map to shape decisions of the existing grid with reference to the following four levels of “System operators who made in pursuit of defined goals. modernization: are experienced in working To reduce the risk of failure, smart-grid planners should follow • Level 0: Manual control and local automation. This is a primarily with manual, situation that exists at many utilities in developing countries. a step-by-step procedure to develop a holistic smart-grid road map paper-driven business that clearly responds to sector goals. The road map—a detailed Most processes are performed manually with little or no processes may have description of actions to be taken by regulators, utilities, countries, or automation. Data communication facilities needed for more difficulty adapting to a regions—should be complemented by equally detailed implementa- advanced data acquisition and control functions are absent. tion plans to realize the ultimate smart-grid objectives (Madrigal and Protective relays, voltage regulators, and capacitor bank computer-assisted system. Uluski 2015). controllers may be mostly electromechanical devices, or in some To prevent such problems, The development of a road map is an iterative and inclusive pro- cases electronic devices, or IEDs. capacity building should cess that also calls for regular updates to match system conditions. • Level 1: Substation automation and remote control. be considered as an A road map focuses stakeholders on a succinct plan, sets a vision, Electromechanical controllers, protection, and metering devices identifies technology needs, supports better investment decisions, in substations have been replaced with IEDs and remote terminal integral part of a smart-grid and provides a timeline for achieving goals. units or data concentrators that acquire, store, process, and strategy.” The five steps in defining a smart-grid road map are: transmit information between IEDs and the control center. 1. Establish a long-term vision based on energy sector goals. • Level 2: Feeder automation and remote control. This 2. Establish a timeline, phases, and goals for each phase. level is characterized by extended remote monitoring and by 3. Define pillars of action to support each of the vision elements. advanced control of feeders, existing line switches, capacitor 4. Determine policies, regulations, and technology applications for banks, voltage regulators, and other utility-owned equipment. each time period and each pillar. It also requires an extensive network of one- or two-way 5. Define metrics for monitoring progress. communications with the IEDs mounted on feeders for improved control and decision making. A good strategy should also include a strategy to build the capacity of the institutions and personnel who will operate the mod- • Level 3: Integration and control of distributed energy ified grid. This may require involving operators in all aspects of the resources, plus demand response. This level features energy planning and design phases and providing a comprehensive training storage, static volt-ampere reactive sources, and advanced program for all operators well in advance of system commissioning. communication and control facilities to effectively integrate and Such a program minimizes the risks of overloading operators with manage inflows from distributed energy sources. The Electric data because operators are taught what to expect from the system Power Research Institute in the United States has produced and how to prioritize the data they receive. a good summary of the options and costs of smart-grid Given the risk of cyber attacks, smart-grid road maps should technologies (EPRI 2011). include the development of a security plan to protect remote monitoring and control facilities from unauthorized access. Several Operational flexibility and associated benefits increase as a utility international organizations are collaborating to address the issue of moves up the levels. These benefits need to be aligned with overall 5 M a p p i n g S m a r t- G r i d M o d e r n i z a t i o n i n P o w e r D i st r i b u t i o n S y st e ms sector goals such as improved efficiency, reduced losses, improved improving efficiency, reducing demand, and accommodating reliability, and the integration of renewable energy resources. In distributed generation. developing economies where grids are often characterized by • Step 2. Identify the current level of grid modernization. frequent outages and high commercial and technical losses, these The grid modernization strategy should leverage the distribution significant challenges also represent significant opportunities, since utility’s existing assets to the fullest extent possible. Therefore, smart grids can improve reliability, reduce losses, and, in some cases, gaining a thorough understanding of where the organization is “Smart-grid planners lower the cost of service delivery. today is an important first step toward grid modernization. should follow a step-by- Although some utilities (mostly in industrialized countries) • Step 3. Generate a list of potential projects. The next step step procedure to develop followed a gradual progression from one level to the next by is to develop a list of potential grid modernization applications a holistic smart-grid road implementing new technologies as they became available, utilities with the potential to address the organization’s needs and map that clearly responds in developing countries generally do not need to proceed one step strategic goals. at a time to the next-highest level on the four-point scale. An old to sector goals. A road • Step 4. Perform a cost/benefit analysis. It is then necessary electromechanical relay can be replaced by a state-of-the-art IED if map focuses stakeholders it fits the business need of the utility. Or all new transmission lines to determine if the cost to implement each application and the on a succinct plan, sets a can be equipped with telecommunication equipment such as optical associated risks are outweighed by the expected benefits over fibers. This leap-frogging process is comparable to the transition the life of the investment (10–15 years). As part of this step, the vision, identifies technology from no telephones to cellular phones without passing through the organization should perform a cost/benefit analysis and risk needs, supports better assessment of potential grid modernization applications, then stage of building out the infrastructure needed to support a wired investment decisions, and telephone system. To do this in a cost-effective manner, however, develop a list of applications recommended for implementation. provides a timeline for requires systemwide planning, further underscoring the need for a • Step 5. Create an investment plan. The final step is to create achieving goals.” modernization road map. an investment plan for the recommended applications—one The increased use of mini-grids as a means of increasing access that uses limited organizational resources (including labor to electricity makes the need for a smart-grid road map even greater. and financial resources) in an optimal manner to achieve Since a road map stipulates standards that ensure interoperability maximum payback on investment as quickly as possible and and standardization of equipment, it will be easy to integrate a at an acceptable level of risk. In almost all cases, a phased mini-grid into the national grid if established regulations are followed implementation strategy is best. Projects that promise the (IEA 2011). Without this, a country could end up with mini-grids that greatest benefits should be completed at the earliest possible cannot be connected to the national grid. date. “Foundational” (enabling) elements—communication No single investment strategy for grid modernization applies to facilities, controllable devices, and so on—should be put in all electric distribution utilities, but five broad steps may be followed place to serve the needs of the application functions to be to define an investment plan. implemented during later phases. • Step 1. Identify business requirements. The first step in creating an investment strategy for grid modernization is In future project planning, the World Bank and other donors to develop a thorough understanding of the key business should propose the development of grid modernization strategies to requirements that apply to the electric utility in the short term clients and help them with the development of such strategies. The (the next three to five years) and in the long term (beyond a planning should highlight gaps in the regulatory environment that, if five-year horizon). This will provide a foundation upon which not closed, may impede modernization. In many cases, a good plan the functional and technical requirements for modernizing the will be able to save significant time and money by absorbing lessons distribution grid may be based. Common objectives include from around the globe and avoiding short-term solutions that have costly long-term implications. 6 M a p p i n g S m a r t- G r i d M o d e r n i z a t i o n i n P o w e r D i st r i b u t i o n S y st e ms References Madrigal, M., and R. Uluski. 2015. Practical Guidance for Defining Make further a Smart Grid Modernization Strategy: The Case of Distribution. IEA (International Energy Agency). 2011. Smart Grids Technology connections Washington, DC: World Bank. https://openknowledge. Roadmap. Paris http://www.iea.org/publications/freepublications/ worldbank.org/bitstream/handle/10986/21001/934380PUB- publication/smartgrids_roadmap.pdf. Live Wire 2014/1. 0978100Box385406B00PUBLIC0.pdf?sequence=1. EPRI (Electric Power Research Institute. 2011. Estimating the “Transmitting Renewable Costs and Benefits of the Smart Grid: A Preliminary Estimate This note is based on original work by Marcelino Madrigal and Robert Uluski. Energy to the Grid,” by of the Investment Requirements and the Resultant Benefits It was peer reviewed by Xavier Remi Daudey (ESMAP). The authors acknowl- Marcelino Madrigal and of a Fully Functioning Smart Grid. Palo Alto: Electric Power edge support from Morgan Bazilian and Ruchi Soni (both of the World Bank’s Rhonda Lenai Jordan. Research Institute (EPRI) (http://www.rmi.org/Content/Files/ Energy and Extractives Global Practice). Live Wire 2014/17. EstimatingCostsSmartGrid.pdf). “Incorporating Energy from Renewable Resources into Power System Planning,” by Marcelino Madrigal and Rhonda Lenai Jordan. Live Wire 2015/38. “Integrating Variable Renewable Energy into Power System Operations,” by Thomas Nikolakakis and Debabrata Chattopadhyay. 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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Morgan Bazilian, mbazilian@ worldbank.org) Live Wire aims to raise the profile of operational staff wherever they are based; those with hands-on knowledge to share. That’s your payoff! It’s a chance to model good uroPe and cenT ral asia 2014/29 all in easTern e ble energy for “knowledge citizenship” and participate in the ongoing change process at the Bank, v i d i n g s u s Ta i n a ess Toward Pro 1 Tracking Progr where knowledge management is becoming everybody’s business. A KNOWLEDGE NOT E SERIES FOR THE ENERGY & EXTRACT IVES GLOBAL PRAC TICE rgy Providing Sustainable Ene Tracking Progress Toward Or 2014/5 1 U n d e r s ta n d i n g C O 2 emissiOns frOm the glObal energy seCt THE BOTTOM LINE pe and Cen tral Asia for All in Eastern Euro stand where does the region on the quest for sustaina ble based on that frame- measures. 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 electricity, and 93 percent of A K N O W L g regiona l trends is critical monitoring the GTF in 2015. data sources that the GTF uses to Trackin The primary indicator s and the population has access s of the Sustain able Energy for All the three SE4ALL goals are summari zed below. the progres track progress toward Understanding CO Emissions from the Global Energy Sector nonsolid fuel for cooking. 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 ional Year of Sustainab le Energy for by the percentage of the access to nonsolid fuels. 2 hydropower, the share the energy sector contributes In declaring 2012 the “Internat objectives percenta ge of the population with establish ed three global and the and reported about 40 percent of global of renewables in energy All,” the UN General Assembly using household surveys Why is this issue important? access to modern These data are collected 2030: to ensure universal and the World Become an author has remained emissions of CO2. three- consumption to be accomplished by of renewable energy in in the World Bank’s Global Electrification Database high energy knowledge the share of the 2010 . energy requires very relatively low. Mitigating climate change services, to 1 double ld Energy Database quarters of those emissions rate of improvement Organization’s Househo CO2 intensity levels have come and to double the global Figure 1. CO2 emissions Health Figure 2. energy-related The share of renewable energy in the energy come from six major the global energy mix, sources of CO question s2 emissions to the period 1990–201 0 (SE4ALL 2012). by sector Renewab le energy. emissions by country consumption down rapidly. The big economies. although coal-fired in energy efficiency relative countries setting percenta ge of total final energy mix is measured by the of Live Wire and global, with individual 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 upunderstanding of the main sources ofin those a way that is consistent with emis- the overall that is derived from renewab energy balances published 40 percent of world energy when energy demand requires a clear their own national targets in their ability are obtained from calculate this indicator Other Carbonrates for more than 80 percent of differ greatly countries Residential production, they were again and whethersions.recent dioxide (CO2) accounts spirit of the initiative. Because 6% sectors progress Other MICs nal Energy Agency and the United Nations. will make more rapid 15% intensity gas emissions globally, 1 primarily from the burning s, some 10% by the Internatio China improvement of energy efficiency is contribute to your responsible for more than of decline in energytotal greenhouse to pursue the three objective on their Other HICs . The rate of energy sector—defined include toexcel elsewhere, depending 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 that they are able to marshal. in 2010 (figure 1). Energy-related intensity, where USA product (GDP) measured in purchas- improvements in some percent of global CO2 emissions the resources and support 7% gross domestic practice and career! up the bulk of such ent of the SE4ALL Other consump tion to India 19% intensity is an at the point of combustion make for the achievem calculate energy countries, the global CO2 Elisa 2 emissions COPortale To sustain momentum transport Road 7% EU terms. Data used to andinare 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 thewaste, 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 Program (ESMAP) are not included in the analysis presented in this rk note. which provides a system (GTF), of combustion. Other Transport includes international marine aviation bunkers, of SE4ALL for Eastern Extractives Tracking Framewo available Other Sectors rail and pipeline transport; perspect ive on the three include pillars commercial/public World Bank’s Energy and given aviation and navigation, country on rigorous—yet practical, services, agriculture/forestry, fishing, energy industries other than electricity and heat genera- Global Practice. global reporting, based elsewhere; Energy = fuels consumed for electricity and Where do emissions come from? tion, and other emissions not specified 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 electricity or gaseous fuels involve (including liquefied petroleum gas), of and forest residues, dung, and so on), processed Vivien Foster is sector Extractives Global refers to solutions that overall emissions rates at or near those 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