Publication: Leveraging Private Sector Solutions in Large Hydropower Projects
Loading...
Published
2024-11-07
ISSN
Date
2024-11-07
Editor(s)
Abstract
This report aims to enhance the understanding of energy sector regulators and policymakers, government agencies, developers, and banks of the status of private sector solutions available to develop large hydropower projects. To that end, the report first looks at (a) past investment trends and (b) findings from the interviews carried out with key stakeholders to provide (c) recommendations drawn from this consultative exercise together with actionable initiatives for DFIs to improve private sector solutions in large hydropower. The report summarizes the literature review, desk research on past investment trends, and interviews with a sample of 23 key stakeholders in LMICs—project developers, government officials, private investors, representatives from development financial institutions, commercial lenders, service providers, and export credit agencies. Interviews were carried out between July and October 2023. The interview topics included (a) drivers of private sector interest in large hydropower projects, (b) key risks and corresponding mitigation strategies, (c) emerging financing practices of interest for large hydropower financing, and (d) how Multilateral Development Banks (MDBs) and Development Finance Institutions (DFIs), such as the World Bank Group, can facilitate private sector participation in large hydropower projects.
Link to Data Set
Citation
“Energy Sector Management Assistance Program. 2024. Leveraging Private Sector Solutions in Large Hydropower Projects. © World Bank. http://hdl.handle.net/10986/42375 License: CC BY-NC 3.0 IGO.”
Associated URLs
Associated content
Other publications in this report series
Journal
Journal Volume
Journal Issue
Collections
Related items
Showing items related by metadata.
Publication Honduras(World Bank, Washington, DC, 2010-05)This report was prepared in response to a request by the government of Honduras for assistance in the preparation of a power sector strategy for the country. Specifically, the government asked for help in identifying the main issues in the power sector, and in addressing them through formulation of a clearly defined, achievable strategy. Left unresolved, these issues risk derailing the country's macroeconomic framework, potentially damaging the competitiveness of the country and its prospects for poverty reduction. The main issues to be analyzed in the study were identified at a workshop held on September 19, 2006, in Tegucigalpa, jointly with the Secretaria de Recursos Naturales y Ambiente (SERNA) and the Comision Presidencial de Modernizacion del Estado (CPME), and with the participation of representatives from the Empresa Nacional de Energia Electrica (ENEE), civil society, the private sector, Congress, public sector agencies, donors, utilities, and ministries. It was decided that the study would be divided into two components: (a) the first would identify and evaluate options on institutional reforms, particularly ENEE's restructuring and management, and securing electricity supply; and (b) the second would formulate a power sector strategy. Two reports will be prepared, with the second report to be finalized according to the timing of the government's decision. This first report analyzes the institutional and policy issues; financial and fiscal concerns; social aspects, such as tariffs and subsidies, and access to electricity; and investment requirements including the development of renewable resources. The report is divided into two parts. Part A presents a diagnostic of the electricity sector, including ENEE's financial performance, fiscal impacts, and reliability of supply, institutional and legal framework, pricing policy, and electricity coverage. Part B evaluates the options available to improve sector efficiency, ensure financial sustainability, promote the diversification of energy sources, and increase electrification coverage.Publication Jobs Generated by the Energy Sector Support Project in Malawi(Washington, DC: World Bank, 2024-01-23)Rural electrification projects in Malawi generated substantial direct and indirect employment opportunities, particularly in construction and skilled roles. The projects also had an impact on gender disparity in employment and highlighted the need to strengthen domestic capacity for materials and equipment production. Moreover, improved access to electricity and enhanced reliability had positive effects on job creation and enterprise development in the region. This case study seeks to shed light on the employment outcomes associated with the investments made in Malawi’s distribution network including rehabilitation, upgrade, and expansion of priority segments of the existing distribution system under the World Bank–financed Energy Sector Support Project (ESSP), which was approved in 2011 and closed in 2018.Publication The Energy Efficient Cities Initiative Practitioners' Roundtable(World Bank, Washington, DC, 2008-11)Cities represent a major contributor of greenhouse gas (GHG) emissions. According to the United Nations Population Fund,1 half of the world's population now lives in cities and is responsible for 75% of global energy use and GHG emissions. Since the world's population will continue to grow, and rapid urbanization will continue particularly in the developing world, tackling climate change issues in the urban context will be essential. In response to these challenges, the World Bank's Energy Sector Management Assistance Program (ESMAP), in cooperation with the Bank?s Finance Economics and Urban Department (FEU), has launched an Energy Efficient Cities Initiative, which is designed to help mainstream and scale-up sustainable energy and climate change mitigation actions and investments in the urban context. The first activity proposed under this Initiative is the Energy Efficient Cities Practitioners Roundtable, a facilitated discussion cohosted by ESMAP and FEU. The purpose of this event was to bring together client cities and partner organizations to investigate ongoing initiatives and programs to support cities' sustainable energy goals needs and develop an Energy Efficient Cities Action Plan that will outline a vision and subsequent actions to be taken under the Initiative. The event took place at the Washington DC offices of the World Bank, from October 20-21, 2008.Publication A Strategy for Coal Bed Methane and Coal Mine Methane Development and Utilization in China(World Bank, Washington, DC, 2007)China is short of clean energy, particularly conventional natural gas. The proven per capital natural gas reserve is only 1/12th of the world average. However, China has large coal bed methane (CBM) resources with development potential which can be recovered from surface boreholes independent of mining and in advance of mining, and also captured as a part of underground coal mining operations. However, in order to meet its targets, the government must improve the administrative framework for CBM resource management, introduce more effective CBM or coal mine methane (CMM) development incentives, raise the technical capacity of the mining sector, expand gas pipeline infrastructure and promote gas markets in coal mining areas. In order to significantly reduce methane emission from coal mines and better exploit the gas recoverable from coal seams, the government should introduce measures to: strengthen the CBM/CMM policy, legal and regulatory framework to improve resource management; improve CMM availability and quality so more can be utilized; enhance incentives to promote expansion of CBM/CMM exploitation and destruction of surplus drained CMM; and Promote development of regional development strategies to take advantage of specific local advantages.Publication Jobs generated by the Kosovo Energy Efficiency and Renewable Energy Project(Washington, DC: World Bank, 2024-03-22)The Kosovo Energy Efficiency and Renewable Energy Project (KEEREP) successfully generated direct and indirect employment opportunities in Kosovo through EE retrofits and related activities. The project also contributed to skill development and market growth in the EE sector, potentially leading to further job creation in the future. However, challenges related to the importation of materials and the need for domestic certification were identified as areas for improvement in facilitating domestic job growth. This case study seeks to shed light on the employment impacts associated with World Bank financing for energy efficiency and renewable energy investments in public buildings overseen by the central government as part of the KEEREP.
Users also downloaded
Showing related downloaded files
Publication Infrastructure Monitor 2024(Washington, DC: World Bank, 2025-04-28)The Infrastructure Monitor report covers global trends in private investment in infrastructure to inform investors, policy-makers and other practitioners. The objective is to deliver global insights on global infrastructure trends across key topics such as investment volumes, performance, blended finance, and ESG drivers, facilitating the monitoring of private infrastructure investment and its performance. These insights aim to support policymakers, investors, and other stakeholders in developing sustainable, resilient, and inclusive infrastructure while fostering effective partnerships with the private sector. Acknowledging the significant infrastructure data gap — with notable variations in coverage, quality across countries and income groups, and differences in the availability of regional breakdowns — our approach leverages the best available aggregated data from leading infrastructure databases to generate market insights while also providing context on its limitations. 2025 will be the fifth version of the report, the first under the World Bank.Publication Global Economic Prospects, June 2025(Washington, DC: World Bank, 2025-06-10)The global economy is facing another substantial headwind, emanating largely from an increase in trade tensions and heightened global policy uncertainty. For emerging market and developing economies (EMDEs), the ability to boost job creation and reduce extreme poverty has declined. Key downside risks include a further escalation of trade barriers and continued policy uncertainty. These challenges are exacerbated by subdued foreign direct investment into EMDEs. Global cooperation is needed to restore a more stable international trade environment and scale up support for vulnerable countries grappling with conflict, debt burdens, and climate change. Domestic policy action is also critical to contain inflation risks and strengthen fiscal resilience. To accelerate job creation and long-term growth, structural reforms must focus on raising institutional quality, attracting private investment, and strengthening human capital and labor markets. Countries in fragile and conflict situations face daunting development challenges that will require tailored domestic policy reforms and well-coordinated multilateral support.Publication Commodity Markets Outlook, April 2025(Washington, DC: World Bank, 2025-04-29)Commodity prices are set to fall sharply this year, by about 12 percent overall, as weakening global economic growth weighs on demand. In 2026, commodity prices are projected to reach a six-year low. Oil prices are expected to exert substantial downward pressure on the aggregate commodity index in 2025, as a marked slowdown in global oil consumption coincides with expanding supply. The anticipated commodity price softening is broad-based, however, with more than half of the commodities in the forecast set to decrease this year, many by more than 10 percent. The latest shocks to hit commodity markets extend a so far tumultuous decade, marked by the highest level of commodity price volatility in at least half a century. Between 2020 and 2024, commodity price swings were frequent and sharp, with knock-on consequences for economic activity and inflation. In the next two years, commodity prices are expected to put downward pressure on global inflation. Risks to the commodity price projections are tilted to the downside. A sharper-than-expected slowdown in global growth—driven by worsening trade relations or a prolonged tightening of financial conditions—could further depress commodity demand, especially for industrial products. In addition, if OPEC+ fully unwinds its voluntary supply cuts, oil production will far exceed projected consumption. There are also important upside risks to commodity prices—for instance, if geopolitical tensions worsen, threatening oil and gas supplies, or if extreme weather events lead to agricultural and energy price spikes.Publication Disentangling the Key Economic Channels through Which Infrastructure Affects Jobs(Washington, DC: World Bank, 2025-04-03)This paper takes stock of the literature on infrastructure and jobs published since the early 2000s, using a conceptual framework to identify the key channels through which different types of infrastructure impact jobs. Where relevant, it highlights the different approaches and findings in the cases of energy, digital, and transport infrastructure. Overall, the literature review provides strong evidence of infrastructure’s positive impact on employment, particularly for women. In the case of electricity, this impact arises from freeing time that would otherwise be spent on household tasks. Similarly, digital infrastructure, particularly mobile phone coverage, has demonstrated positive labor market effects, often driven by private sector investments rather than large public expenditures, which are typically required for other large-scale infrastructure projects. The evidence on structural transformation is also positive, with some notable exceptions, such as studies that find no significant impact on structural transformation in rural India in the cases of electricity and roads. Even with better market connections, remote areas may continue to lack economic opportunities, due to the absence of agglomeration economies and complementary inputs such as human capital. Accordingly, reducing transport costs alone may not be sufficient to drive economic transformation in rural areas. The spatial dimension of transformation is particularly relevant for transport, both internationally—by enhancing trade integration—and within countries, where economic development tends to drive firms and jobs toward urban centers, benefitting from economies scale and network effects. Turning to organizational transformation, evidence on skill bias in developing countries is more mixed than in developed countries and may vary considerably by context. Further research, especially on the possible reasons explaining the differences between developed and developing economies, is needed.Publication Business Ready 2024(Washington, DC: World Bank, 2024-10-03)Business Ready (B-READY) is a new World Bank Group corporate flagship report that evaluates the business and investment climate worldwide. It replaces and improves upon the Doing Business project. B-READY provides a comprehensive data set and description of the factors that strengthen the private sector, not only by advancing the interests of individual firms but also by elevating the interests of workers, consumers, potential new enterprises, and the natural environment. This 2024 report introduces a new analytical framework that benchmarks economies based on three pillars: Regulatory Framework, Public Services, and Operational Efficiency. The analysis centers on 10 topics essential for private sector development that correspond to various stages of the life cycle of a firm. The report also offers insights into three cross-cutting themes that are relevant for modern economies: digital adoption, environmental sustainability, and gender. B-READY draws on a robust data collection process that includes specially tailored expert questionnaires and firm-level surveys. The 2024 report, which covers 50 economies, serves as the first in a series that will expand in geographical coverage and refine its methodology over time, supporting reform advocacy, policy guidance, and further analysis and research.