Transcript IFC – WB Coordination Meeting 4 Feb, 2004

Energy and Climate Change
Jaime Quijandria
The World Bank
May 2006
Outline
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Energy Matrix and Climate Change
World Bank Energy Work Programs
Energy and Environmental
Challenges
Clean Energy For Development
Framework
Opportunities for Latin America
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Energy Matrix in LAC
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Energy Supply----In Latin America, about three
quarters of energy consumption come from oil,
gas and coal, the other fuel sources being
nuclear, biomass, hydro and other new
renewables.
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Hydropower accounts for over half of installed
generation capacity in Latin America, and other
renewables (geothermal, wind, solar, etc)
represents only 1%. The share of total renewable
sources has however declined over the last
decade.
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LAC: Installed Hydro Share
80%
70%
60%
50%
40%
30%
20% Argentina
10%
Brazil
Colombia
Chile
Venezuela
Other
Mexico
0%
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Energy Access and Investment
Needs
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Energy Access----Nearly 100 million people in Latin
America (about 20% of the total population) still rely on
traditional biomass for cooking and heating. Over 65
million people do not have access to electricity, including
both the rural and peri-urban areas. Also the peri-urban
residents with access often experience erratic supply.
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Investment Needs----The World Bank study shows that
an investment of US$215 billion is needed in the LAC
electricity sector between 2005 and 2015. To achieve a
70% coverage of rural households and 100% coverage
of urban households over the next decade, the required
investment need is estimated to be US$ 56 billion.
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Importance of Energy Sector
GHG Emissions in LAC
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World Bank Energy Work Program in LAC
Mexico
The Bahamas
Cuba
Mexico, D F
Dominican Republic
Jamaica
Belize Kingston
Haiti
Honduras
Guatemala
Port-au-Prince
Tegucigalpa
El Salvador
Caracas
Nicaragua
Venezuela
Guyana
Costa Rica Panama Colombia
San Jose
Suriname
French Guiana
Bogota
Ecuador
Quito
Peru
Recife
Brazil
Lima
La Paz
Bolivia
Paraguay
Cuiaba
Asuncion
Chile
Argentina
Buenos Aires
Brasilia
“Green”
Countries
are where
World
Bank has
active
energy
programs.
Uruguay
Resident Missions and
Other Field Presence
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Sub- Sectors that Bank is
Involved
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General Energy (transmission,
rehabilitation, power sector
lending and technical assistance)
Rural Electrification
Renewable Energy
Energy Efficiency
Carbon Trading
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Some Project Examples
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the Nicaragua Off-grid Rural Electrification and Bolivia Decentralized
Infrastructure for Rural Transformation Projects provide electricity to
remote villages and dispersed users with renewables. Both projects
use output-based aid schemes with payment tied to actual delivery of
specific service level and quality. The innovative nature of this
scheme is that it moves beyond traditional lending schemes toward
results-based frameworks.
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The Colombia Jepirachi Carbon Offset Project contributes to the
reduction of greenhouse gas emissions from the power sector in
Colombia through the promotion of a 19.5 MW wind-based electricity
generation facility. The project is expected to generate a revenue of
US$3.2 million by selling the carbon emission reduction credits. Part
of the carbon revenue will be dedicated to co-finance a social
program that will contribute to improvements in the welfare of the
local indigenous community.
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The energy scenario is,
however, evolving
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Increasing international oil prices
which appear to be sustained and
threaten energy security
Stronger will to take actions on
climate change
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Challenges to meet dual energy
and environmental needs
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Meeting the increasing energy demand
Access to affordable and reliable
modern energy services
Controlling local and regional air
pollution
Combating climate change
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G8 Call: Clean Energy and
Development Investment Framework
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The G8 Gleneagles summit requested the Bank to develop a
clean energy investment framework in last July to accelerate
investment so that developing countries can meet energy
demands for growth and poverty alleviation in an
environmentally sustainable way.
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The Bank is following a two-track approach:
--- by end of this year, analyze our current existing
instruments, the potential role of the private sector, and
the potential role of other partners such as the regional
banks.
--- for the next two years, do in-depth country studies to
develop technology options and action plans
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The Framework were generally endorsed by the Bank
shareholders at the Spring Meetings 2006.
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Examples of New Financing
Instruments Under Consideration
Clean Energy Financing Vehicle
 Power Rehabilitation Financing Facility
 Project Development Fund
 Venture Capital funds for technology
options
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Opportunities for LAC
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The five large developing countries were identified LAC is an essential
part of this new G8 initiative. Consultations with Brazil and Mexico
identified substantial diagnostic and analytic work programs.
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The programs for Brazil including scaling-up renewable energy
development through expanded hydro and bioenergy; improvement of
urban and industrial energy efficiency; natural gas development; and
implementation of the forested area strategy.
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The programs for Mexico include energy diversification; energy
efficiency improvement in buildings and industry; sustainable transport
development; and scaling up low-carbon options including expanding
renewable energy and industrial and refinery efficiency (such as
cogeneration).
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Promising Low Carbon
Technologies for LAC
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