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Energy

Why Zambia’s 6 cents is more significant than Dubai’s 3 cents

Gevorg Sargsyan's picture


Last week Zambia set a new price record for utility-scale solar-generated energy in Africa with the support of the World Bank Group’s (WBG) Scaling Solar initiative. The auction for 100 MW (2x50 MW) resulted in a price as low as 6 cents/kWh.
 
This is good news for the country, which much like the rest of Sub-Saharan Africa faces acute electricity shortages. Nearly 700 million people in Sub-Saharan Africa don’t have access to electricity.
 
Zambia’s solar auction result followed a series of headline-making auctions in India, Mexico, Peru, and Dubai. In Dubai’s case, the price was as low as 3 cents/kWh -- the lowest price ever offered for solar power. Solar auctions are effectively a competitive bidding process to build power plants and supply a specific quantity of electricity at a pre-agreed price over a specified period of time.

The cost of renewable energy public-private partnerships in developing countries

Jeff Delmon's picture
Also available in: Español

 Tomislav Georgiev /World BankAltruistic and marketing motives aside, a private operator of infrastructure (in particular in an arrangement as highly structured as PPP) is likely to implement renewable energy technology only if profitable and/or mandated in the PPP arrangements. Critics are often angry that private operators think first about the bottom line, rather than make decisions based on the best interests of the environment. This is unfair to some extent, as private companies are often committed to climate friendly efforts (whether truly altruistic or for marketing opportunities). But as a general premise, the private sector will do what you pay it to do.

In the poorest countries, an acute climate risk

Sri Mulyani Indrawati's picture

A man walks through a flooded rice field. © Nonie Reyes/World Bank

For the first time in history, the number of people living in extreme poverty has fallen below 10%. The world has never been as ambitious about development as it is today. After adopting the Sustainable Development Goals and signing the Paris climate deal at the end of 2015, the global community is now looking into the best and most effective ways of reaching these milestones. In this five-part series I will discuss what the World Bank Group is doing and what we are planning to do in key areas that are critical for ending poverty by 2030: good governancegender equality, conflict and fragility, preventing and adapting to climate change, and, finally, creating jobs.

Seawater is rising in coastal Bangladesh. The soil contains more and more salt as the sea encroaches on the land. As a result, farmers see their crops declining. Communities are hollowing out, as working-age adults move to cities. Freshwater fish are disappearing, reducing the amount of protein in local diets. And in the dry season, mothers have to ration drinking water for their children – in some areas, to as little as two glasses a day.
 
Climate change is finally being taken seriously in the developed world, but it is generally seen as a future threat, to be managed over the coming years.  For poor people in poor countries, particularly those living along coastlines, in river deltas, or on islands, it is a clear and present danger – and increasingly, a dominant fact of life.

On the brink - let's act on climate change now

Sameh Mobarek's picture


Imagine for a moment that the most advanced spaceship visited Earth in full view of the planet’s inhabitants.  From this spaceship, a humanoid life form named Klaatu emerges, followed shortly after by a menacingly large robot.  Klaatu’s message to the people of Earth is revealed in one of the climactic exchanges of this story with the protagonist, Helen Benson, a young female scientist that was at the forefront of her field:

Helen Benson: I need to know what’s happening.
Klaatu: This planet is dying. The human race is killing it.
Helen Benson: So you’ve come here to help us.
Klaatu: No, I didn’t.
Helen Benson: You said you came to save us.
Klaatu: I said I came to save the Earth.
Helen Benson: You came to save the Earth… from us. You came to save the Earth from us.
Klaatu: We can’t risk the survival of this planet for the sake of one species.
Helen Benson: What are you saying?
Klaatu: If the Earth dies, you die. If you die, the Earth survives. There are only a handful of planets in the cosmos that are capable of supporting complex life…
Helen Benson: You can’t do this.
Klaatu: …this one can’t be allowed to perish.
Helen Benson: We can change. We can still turn things around.
Klaatu: We’ve watched, we’ve waited and hoped that you would change.
Helen Benson: Please…
Klaatu: It’s reached the tipping point. We have to act.

Doing more with less: evaluating our consumption and production.

Edie Purdie's picture

This is part of a series of blogs focused on the Sustainable Development Goals and data from the 2016 Edition of World Development Indicators.  Chris Sall and Esther Naikal co-authored this blog.

A third of all energy is used to produce food but a third of food is lost or wasted. Saving a quarter of this lost food would be enough to feed 870 million people. “Doing more and better with less” means meeting the basic needs of people and promoting a better quality of life while also cutting harmful waste and pollution.   Using natural resources more efficiently is also a way to improve. Sustainable Development Goal 12 seeks to ensure sustainable consumption and production patterns.

Managing natural resources efficiently

Adjusted net savings (ANS) is an indicator of efficient use of natural assets (target 12.2). It measures the difference between national production and consumption—the change in a country’s wealth. Adjusted net savings takes into account investment in human capital, depreciation of fixed capital, depletion of natural resources, and pollution damage. Positive savings form the basis for building wealth and future growth. Negative savings rates suggest declining wealth and unsustainable development. ANS is especially useful for gauging whether countries that depend heavily on natural resources are balancing the depletion of their natural resources by investing rents in other forms of productive capital, such as through education. Low- and lower middle-income countries with the highest level of resource dependence also tend to have the lowest savings rates.

How can we afford not to provide power when countries are fragile?

Charles Feinstein's picture

Earlier this year I was on a panel organized during the Fragility Forum 2016, where the question posed to a panel of five was, “what can we do on energy in fragile states?

But I found myself thinking, "how can we afford to do nothing?"

Modern energy is a cornerstone of sustaining and empowering people, as much as it is for economic growth. When I think about it, the first thought that comes to mind is that children in any country have the right to learn to read and write without being put in danger through kerosene lighting at night. It is precisely this new generation in fragile states that we cannot afford to lose if we do not want countries to become failed states.

Getting current: New tech giving more Africans access to electricity

Charles Feinstein's picture
Control room at a power station in Ghana. (Photo by Jonathan Ernst / World Bank)

Much work remains to be done to ensure reliable electricity access for Africa's citizens. A number of complications are making it difficult to achieve this UN Sustainable Development Goal. Yet access rates are expanding in many nations, and technology and design improvements offer opportunities to make rapid leaps forward. 

Of the 1.1 billion people on Earth without access to electricity, about half live in Africa. And while the World Bank’s Global Tracking Framework shows progress is being made to deliver electricity to those without, most of it is taking place in Asia. In Africa, it’s a different story.

How many people does it take to change a light bulb?

Ashok Sarkar's picture
What is this? Read on to find out.

Riddle us this. In what country are...
  • 450 million ceiling fans already in use, 40 million new ones sold every year?
  • 350 million fluorescent tube lights already in use, 10 million new sold every year?
  • 30 million air conditioners already in use, three million new sold every year?
If you guessed India, you are right.

With a population of about 1.2 billion, India is one of the largest consumer markets in the world. So it’s no surprise that household appliances account for several gigawatts of electricity usage across the country. As India’s middle class grows and people move from villages to towns and cities, electricity usage is only increasing. In fact, hundreds of millions of electric appliances will be added over the next few decades. This poses a serious challenge for India’s energy security since there already are electricity supply shortages, which often lead to chronic outages and blackouts. The surge in household appliances is also a climate change challenge—India, the world’s third-largest CO2 emitter, is predicted to continue increasing its greenhouse gas emissions at least until 2030.

But India is turning this challenge into an opportunity by tapping into energy efficiency solutions, a relatively new area with already a few major successes. Considered globally as the “first fuel,” energy efficiency is rising to the forefront of India’s quest for innovative solutions to provide 24/7 reliable and affordable electricity for all.

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