The cost of energy in Eastern Europe and Central Asia, as elsewhere, is an important policy issue, as shown by the concerns for energy affordability during the past harsh winter. Governments try to moderate the burden of energy expenditures that is experienced by households through subsidies to the energy providers, so that households pay tariffs below the cost recovery level for the energy they use. These subsidies result in significant pressures on government budgets when international prices rise. They also provide perverse incentives for the overconsumption of energy as households do not pay the true cost of energy, and therefore, have fewer incentives to save or to invest in energy efficiency. Balancing competing claims-fiscal and environmental concerns which would push for raising energy tariffs on the one hand and affordability and political economy concerns which push for keeping tariffs artificially low on the other-is a task that policy makers in the region are increasingly unable to put off. Addressing this issue is all the more pressing as the ongoing crisis continues to add stress to government budgets...

This study describes the Energy Efficiency for Sustainable Development (EEfSD) action plan, to scale up energy efficiency operations in client countries. The EEfSD strategy comprises of interventions at three levels: policy and regulatory, sector and sub-sector, and at end-use equipment and appliances. It is structured along four tracks: integrating energy efficiency within economic and sector work; mainstreaming energy efficiency in investment operations; improving internal operational, learning and analytic capacity; and monitoring, evaluation, and outreach. Priority focus is on countries with highest energy intensities, where rapid growth of the energy sector is expected and where total energy use is greatest. Implementation of the action plan will be guided by the Energy, Transport and Water Department, and will require cooperation and collaboration across the Bank Group, in particular the regional operations units. This paper presents the estimated incremental costs for FY07-09 which have been committed from energy trust funds and Bank budget.

The purpose of this report is to assess the status of past and current energy efficiency initiatives in Lebanon and, in conjunction with key stakeholders, prepare an Energy Efficiency Action Plan, implementation of this Action Plan in the near future. The identified EE programs have been developed based on available data and information gathered during our one-week field mission and the best practices in similar countries with comparable backgrounds. The savings and investments for each proposed program have been evaluated outlining the impacts of the expected emission reductions and of the expected primary energy savings. The major design phases of each program, their implementation, monitoring plans, and evaluation have been defined. Program financing sources have been recommended and enumerated for possible consideration during the development phase. The role of the various stakeholders has also been determined for each program with general recommendations and suggestions for the successful implementation of the programs. Actions plans are recommended...

The tradeoffs between energy and water have been gaining international attention in recent years as demand for both resources mount and governments continue to struggle to ensure reliable supply to meet sectoral needs. As almost all energy generation processes require significant amounts of water, and water requires energy for treatment and transport, these two resources are inextricably linked. This relationship is the energy-water nexus. Section one of this paper examines the existing models, literature, and management frameworks on the nexus, as it seeks to determine what gaps exist. Section two describes the water demands of power generation in order to identify potential areas of future uncertainty and delineate areas where integrated energy-water management may improve the reliability of operating power plants and the viability of schemes. Finally, section three describes possible solutions that may alleviate challenges resulting from the link between energy and water by improving energy efficiency and integrating water resources management into energy planning.

As articulated in the new energy plan for 1999-2008, the key sector objectives for the Philippines energy sector remain security of energy supply, affordable prices, and an energy infrastructure compatible with broader social and environmental objectives. Ths report is organized as follows: Chapter 1 briefly lays out the social, environmental, and economic justifications for developing non-renewable energy resources (NRE) against the backdrop of privatization and reform of the energy sector. It reviews the experience with NRE from the 1970s to the present, highlighting some important lessons learned from both successful and failed initiatives. Chapter 2 reviews the commercial status and current and expected costs internationally of NRE technologies of potential usefulness. It distinguishes between immediate and long-term potential, small- and large-scale systems, and rural and urban applications, as well as reviewing the status of several off-grid and grid-connected technologies. Chapter 3 examines how existing and impending policies...

The document contains the proceedings of the Energy Investment Forum conference, The Forum was held to discuss option and explore opportunities for improving access to investment capital and financing for energy efficiency in developing countries. The Forum was held New York City, New York, as a side event to the 14th meeting of the Commission of Sustainable Developments as one of its core themes. Over the two-day session, participants were able to preset and debate the state of the global energy efficiency market and to explore its relevance in the broader global energy debate. Topics addressed included : energy efficiency issues and opportunities; country experiences in promoting energy efficiency; market-based approaches for utility, building and industry sectors; financing energy efficiency; innovative financial structures; and mobilizing local capita markets. The key outcome of the Forum was a call for significant scale-up of energy efficiency investment in the developing world. Recognize that a kW (Kilowatt) save is cheaper...

The energy sector rapid assessment was conducted by the World Bank for the Government of Romania, as part of an advisory services program on climate change and low carbon green growth. The objective of this assessment is to identify climate change related investment priorities and necessary implementation support for the 2014-2020 operational programs, with a view to achieving the European Union (EU) 2020 targets and laying a foundation for continued de-carbonization of the energy sector. This rapid assessment focuses on climate change mitigation actions in power and heat generation and in energy use in manufacturing, residential, public, and commercial sectors. Energy use and efficiency in the transport sector is studied in a separate transport sector rapid assessment. It includes in-depth investigation of the main energy end-use sectors or subsectors, low-carbon energy supply optimization based on long-term energy demand patterns and trends, and the design and approaches of key energy efficiency intervention programs...

Improvement of energy efficiency is one of the main options to reduce energy demand and to reduce greenhouse gas emissions in Ukraine. However, large-scale deployment of energy efficient technologies has been constrained by several financial, technical, information, behavioral, and institutional barriers. This study assesses these barriers through a survey of 500 industrial and commercial firms throughout Ukraine. The results from the survey were used in a cumulative multi-logit model to understand the importance of the barriers. The analysis shows that financial barriers caused by high upfront costs of energy efficient technologies, higher costs of finance, and higher opportunity costs of energy efficiency investment are key barriers to the adoption of energy efficiency measures in Ukraine. Institutional barriers particularly lack government policies, which also contributes to the slow adoption of energy efficient technologies in the country. The results suggest targeted policy and credit enhancements could help trigger adoption of energy efficient measures. The empirical analysis shows strong inter-linkages among the barriers and finds heterogeneity between industrial and commercial sectors on the realization of the barriers.

Accelerating development in Sub-Saharan Africa will require massive expansion of access to electricity -- currently reaching only about one-third of households. This paper explores how essential economic development might be reconciled with the need to keep carbon emissions in check. The authors develop a geographically explicit framework and use spatial modeling and cost estimates from recent engineering studies to determine where stand-alone renewable energy generation is a cost effective alternative to centralized grid supply. The results suggest that decentralized renewable energy will likely play an important role in expanding rural energy access. But it will be the lowest cost option for a minority of households in Africa, even when likely cost reductions over the next 20 years are considered. Decentralized renewables are competitive mostly in remote and rural areas, while grid connected supply dominates denser areas where the majority of households reside. These findings underscore the need to de-carbonize the fuel mix for centralized power generation as it expands in Africa.

Recent volatility in international energy prices has revealed South Eastern Europe as one of the most vulnerable regions to such external shocks. Under the current global economic downturn, in addition, the region s energy-intensive industries are faced with the challenge of the weakening demand for their outputs. This paper casts light on the relationship between the price and the demand for energy. Based on firm level data, it is shown that the price elasticity of industrial energy demand is about -0.4 on average. There are a number of data issues to interpret the results correctly. But Albania and Macedonia are systematically found to have a relatively elastic demand for energy on the order of -0.7 to -0.8. In these countries, therefore, price adjustments would be one of the effective policy options to balance demand with supply during the period of energy crisis. In other countries, the demand response would be much weaker; pricing cannot be the only solution. Other policy measures, such as facilitation of firm energy efficiency and improvements in the quality of infrastructure services...

The development of private sector energy service providers (ESPs), including energy service companies (ESCOs), that specialize in energy efficiency (EE) project development and implementation can help overcome some of the important barriers to scaling up implementation of energy efficiency (EE) projects, particularly in the public sector. ESPs can offer a range of services spanning the energy services value chain and provide the technical skills and resources needed to identify and implement EE opportunities, perform services using performance based contracts (thereby reducing the risks to the energy users), facilitate access to financing from commercial lenders, and enable the energy users to pay for the services from the cost savings achieved. This guidance note provides examples of actions taken by governments in many countries (such as Armenia, Bulgaria, Croatia, Czech Republic, Germany, Hungary, and India) to foster the energy services market and help establish and grow ESPs in their countries. Experience from these countries shows that governments need to adopt a three-pronged approach...

Developed and developing countries alike are increasingly motivated by the benefits offered by renewable energy, including enhanced energy security, reduced greenhouse gas emissions and local envi¬ronmental impacts, increased economic and industrial development, and more options for reliable and modern energy access. Today, about 120 countries, more than half of them developing coun¬tries have a national target related to renewable energy. Moreover, 88 countries have introduced price- or quantity-based incentives for renewable energy. Just over half of those countries are developing. Doubling the share of renewable energy in the global energy mix is one of the three complementary objectives of the Sustainable Energy for All (SE4ALL) initiative. Formally launched in the UN General Assembly in September 2012 and co-chaired by the president of the World Bank Group and the UN Secretary-General, SE4ALL calls on governments, businesses, and civil society to address urgent energy challenges, including increasing the use of renewable energy...

This report was designed to provide senior Russian policymakers with a comprehensive and practical analysis of energy efficiency in Russia: potential, benefits, and recommendations on how to fully tap into this resource. Shortly after his inauguration, President Medvedev made several public statements identifying Russia s inefficient use of energy, and the associated economic and ecological consequences, as one of the most pressing problems facing the nation. He has called for an action plan to halve Russia s energy intensity by 2020. The goal of this report is to make a significant contribution toward developing such a plan.

Results-based approaches (RBA) are becoming increasingly important, in both developed and developing countries. Within the energy sector, there are already several large-scale results-based schemes that make payments to implementers and service providers. However, support to national or regional governments based on the achievement of results in the energy sector remains unusual. This report seeks to explore the opportunity of utilizing RBA within the energy sector. It complements earlier work by vivid economics and the energy sector management assistance program (ESMAP) on results-based financing (RBF). The report constitutes one output in a broader research agenda on RBAs in the energy sector being undertaken by ESMAP of the World Bank. This report is intended to provide a high-level guide to results-based aid in the energy sector. It should be useful for a wide range of interested parties, including recipients, donor agencies, development practitioners, and academics. By providing a clear and justified analytical framework...

Reliance on solid fuels for cooking is an indicator of energy poverty. Access to modern energy services - including electricity and clean fuels - is important for achieving the Millennium Development Goals. It can also reduce womens domestic burden of collecting fuelwood and allow them to pursue educational, economic, and other employment opportunities that can empower them and lead to increased gender equality. Similarly, the use of clean cooking and heating fuels in efficient appliances can reduce child mortality rates. Without access to modern energy services, the likelihood of escaping poverty is very low. Interventions to improve energy access to the poor have focused mainly on electricity access and have often neglected nonelectricity household energy access. Household energy for cooking in particular has received little policy attention in the overall energy sector dialogue, and consequently its lending volume remains low, in spite of the magnitude of the development challenges it represents. The objective of this note is to assist task teams with broad project design principles related to household energy for cooking. It follows five main reports produced by the World Bank Group over the last three years: (1) Household Cookstoves...

This evaluation assesses the performance of International Finance Corporations (IFC's) energy efficiency finance program in China aimed at stimulating energy efficiency investments through bank guarantees and technical assistance. The program's significance is underpinned by the fact that China's size, rapid economic growth, and inefficiencies in energy use make it one of the world's largest emitters of carbon dioxide (CO2.). The utilization of IFC's program has been rapid compared with other similar programs. The difference made by the program is traced along the chain of interventions: (i) at the level of banks, the program is narrowly based on one of the two partner banks, which, with the help of the program, expanded its energy efficiency lending as a new business line; (ii) at the level of energy management companies, the program's technical assistance improved the program participants' access to finance; and (iii) at the end-user level, it promoted the use of energy efficiency investments that achieved reduction of greenhouse gas emissions. The evaluation recommends areas of improvement to realize greater impact. First...

During the 90s, most countries in Latin America and the Caribbean Region (LCR) supported by the World Bank, implemented a market-oriented reform in the energy sector to promote competition, economic regulation and greater private sector participation, as the main instruments to improve the quality, reliability and efficiency of energy services, and improve the government's fiscal position and increase affordable access to modern energy services for the poor. This report comprises an assessment of the energy sector reform in the region: its achievements, difficulties, lessons learnt and current status; an assessment of the future needs of the energy sector investment and financing requirements, constraints, and challenges; and a review of the role of development agencies in supporting the region's energy needs. The study is not a systematic analysis of the reform experience and needs of individual countries, which is not deemed necessary to define an energy strategy for the region, but rather an analysis of the main themes that are common to most countries...

This report assesses global experiences with Energy Efficient Purchasing (EEP) as a tool to help governments improve the efficiency of their facilities and public services. In many developed countries, EEP is increasingly becoming subsumed within broader Green Public Procurement (GPP) or sustainable procurement policies, where EE is only one indicator among many others. Global energy needs are increasing at a steady pace. Rapid industrial development and growing populations have led to an exponential growth in worldwide energy consumption. According to the international energy agency, demand for energy is projected to grow steadily from 2010 to 2035, representing a 40 percent increase. About 90 percent of this increase will come from developing countries. As these countries continue to urbanize, develop their industrial infrastructure, and provide universal access to basic services, strains on the existing energy infrastructure and resources will intensify. This, coupled with a substantial rise in the middle class in many of the emerging economies...

Half of humanity about 3 billion people are still relying on solid fuels for cooking and heating. Of that, about 2.5 billion people depend on traditional biomass fuels (wood, charcoal, agricultural waste, and animal dung), while about 400 million people use coal as their primary cooking and heating fuel (UNDP and WHO 2009). The majority of the population relying on solid fuels lives in Sub-Saharan Africa and in South Asia. In some countries in Central America and in East Asia and the Pacific, the use of solid fuels is also significant. The inefficient and unsustainable production and use of these fuels result in a significant public health hazard, as well as negative environmental impacts that keep people in poverty. Strategies to improve energy access to the poor have focused mainly on electricity access. They have often neglected non electricity household energy access. It is, however, estimated that about 2.8 billion people will still depend on fuel wood for cooking and heating in 2030 in a business-as-usual modus operandi (IEA 2010). The need for urgent interventions at the household level to provide alternative energy services to help improve livelihoods is becoming more and more accepted. This report's main objective is to conduct a review of the World Bank's financed operations and selected interventions by other institutions on household energy access in an attempt to examine success and failure factors to inform the new generation of upcoming interventions. First...

La energía es un elemento fundamental para muchos aspectos del desarrollo socioeconómico. Los servicios que la mayoría de las personas en los países industrializados dan garantizados - iluminación adecuada, energía limpia para calefacción y cocina, telecomunicaciones, fuerza motriz y ocio - están fuera del alcance en gran parte de la población mundial. La falta de acceso a servicios energéticos confiables y asequibles representa un claro obstáculo para el desarrollo humano, social, económico y para el logro de los Objetivos de Desarrollo del Milenio. Constituyendo actualmente un hecho inaceptable e insostenible, la pobreza energética representa una cruda realidad que junto a otros problemas globales debe ser tratada de manera urgente. A pesar de los importantes esfuerzos realizados por las instituciones y los gobiernos locales, las entidades públicas y las organizaciones internacionales, la tendencia indica que el número total de pobres en términos de acceso a la energía aumente en las próximas décadas, a menos de que se inicien de forma inmediata acciones adicionales orientadas a evitar ese incremento. En este sentido, la historia ha demostrado que es posible lograr un significativo avance en acceso energetico en un corto espacio de tiempo. Este hecho se ha producido recientemente en varios países asiáticos (por ejemplo...