Between 2007 and 2011, Peru doubled electricity access rates from 30 percent of households to over 60 percent. The national rural electrification program has been supported by US$50 million in World Bank financing and US$10 million from the Global Environment Facility (GEF).
This is a remarkable achievement, but to make sure that the new opportunities benefit local people in rural areas, an additional initiative was launched. This “productive uses of electricity” pilot project adapted lessons from two World Bank-supported activities in Indonesia under which the national utility reached out to local communities through NGOs.
Rusumo Falls Hydroelectric Power Project: Bringing More Electricity to Africa's Great Lakes Region
In May this year, I joined World Bank Group President Jim Yong Kim and U.N. Secretary General Ban Ki-moon on their historic visit to Africa’s Great Lakes region.
As we travelled this war-weary region, at every stop, whether in towns or the countryside, we saw families involved in an epic effort to keep the peace, find jobs, feed and educate their children, and make their lives more prosperous.
In-stream tidal units convert the energy of tides and currents into power – a type of hydropower which has operated successfully for decades. No matter what you call it -- wave, in-stream tidal, river current, or hydro turbines; or where it sits -- sitting on the river bottom or suspended from a barge -- the technology has proven itself. What has remained more elusive is the much-needed transition from subsidies to commercial financing.
This past Monday I was present as the 250 megawatt Bujagali hydropower plant on Uganda’s River Nile – supported by MIGA, as well as our sister institutions the World Bank and IFC – was commissioned into active service.
After many years of preparation and planning, this was an auspicious moment indeed for Uganda, with the plant’s opening coinciding with the Jubilee celebrations marking the country’s 50 years of national independence. The new Bujagali power plant comes close to doubling the country’s electricity capacity and in a single step has elevated Uganda to having the second largest kilowatt consumption per capita in East Africa, following Kenya.
This weekend marked the beginning of an important new chapter of nation-building, with the celebration and formal launch of the world’s newest nation, South Sudan. United Nations Secretary General Ban Ki-moon and a host of dignitaries were on hand. The civil war with the north ended in 2005, and the World Bank has had an office there since just after that.
I spent several days there two weeks ago, pre-independence, but very much in a moment of great excitement about what the nation the size of the Iberian peninsula with a population of 8 to 9 million could accomplish.
South Sudan will begin life as both a tremendously poor and under-served nation in terms of the services for its people, and a fantastically rich one in terms of resources and potential. The country has less than 100 kilometers (62 miles) of paved road. At present, conflict with the north’s Khartoum-based government continues over the key oil, gas, and mining provinces of the border region, where much of the international press is focused, as well as great deal of investment interest.
My focus was in the other direction, south of the sprawling capital of Juba, along the dramatic White Nile. With fantastic logistical support from the World Bank Juba office, from the Wildlife Conservation Society’s South Sudan conservation team, and from the director of the Nimule National Park.
Brazil relies heavily on its abundant hydropower resources to meet electricity demand, which is rising by about 5% a year. These resources have helped Brazil hook up more than 2.4 million rural homes since 2003, in addition to delivering electricity to its big cities. But hydropower is vulnerable to drought too, and the Brazilian Amazon—home to most of the country’s hydropower potential—has had two devastating droughts since 2005.
That’s just one example of the exposure of the energy sector to climate impacts. Up to now, most of the focus for the discussion of the energy-climate nexus has been on the impact of fossil-fuel energy use on climate change, the need to mitigate it, and the shift to renewable energy sources. This week, two World Bank colleagues of mine have just launched a new study that looks at the issue from the opposite side of the equation: climate impact on energy systems.
The study is entitled Climate Impacts on Energy Systems, Key Issues for Energy Sector Adaptation, by Jane Ebinger and Walter Vergara. It provides a framework for further analysis of vulnerability indicators for climate impacts on hydropower, wind, solar, wave and tidal energy. It also offers analytical tools that experts and policymakers can use to construct vulnerability and impact metrics for their energy sectors, along with a review of emerging adaptation practices.
Last week, I discussed the two very different South Asias and the need for regional cooperation to bring the lagging regions up to the standards of thriving regions. However, increased market integration by itself will not be sufficient to accelerate growth and benefit the lagging regions. South Asia suffers from a massive infrastructure deficit. Infrastructure is like second-nature geography, which can reduce the time and monetary costs to reach markets and thus overcome the limitations of physical geography.
Improved infrastructure that enhances connectivity and contributes to market integration is the best solution to promoting growth as well addressing rising inequality between regions. The Ganga Bridge in Bihar in India is a good example of second-nature geography. The bridge has reduced the time and monetary costs of farmers in the rural areas in north Bihar to reach markets in Patna, the largest city in Bihar. The Jamuna Bridge in Bangladesh is another good example of spatially connective infrastructure. The bridge has opened market access for producers in the lagging Northwest areas around the Rajshahi division. Better market access has helped farmers diversify into high value crops and reduced input prices.
South Asia suffers from three infrastructure deficits. First, there is a service deficit, as the region’s infrastructure has not been able to keep pace with a growing economy and population.
Residents of Honiara eating dinner during a blackout. Energy in the Solomon Islands can be unreliable and expensive.
A few nights ago, when I returned to my house on the ridges above Solomon Islands capital Honiara, my alarm clock was flashing 2 p.m. It was obviously wrong, and I have stopped relying on it for the time. Instead it is simply a very noisy gauge of how long it has been since the last power outage.
Unreliable energy supply is perhaps one of the harder things to get used to when living in Honiara. Long overdue maintenance being carried out on the city’s diesel chugging generators causes power outages for 72 hours per month on average. What is worse is that this actually seems efficient compared to rural areas which, due to a lack of spare parts and diesel, can lose power for up to a week.