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Jobs: The fastest road out of poverty

Sri Mulyani Indrawati's picture

A worker at the E-Power plant in Port-au-Prince, Haiti. © Dominic Chavez/World Bank

For the first time in history, the proportion 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 governance, gender equality, conflict and fragility, preventing and adapting to climate change, and, finally, creating jobs.

Good jobs are the surest pathway out of poverty. Research shows that rising wages account for 30 to 50% of the drop in poverty over the last decade. But today, more than 200 million people worldwide are unemployed and looking for work — and many of them are young and/or female. A staggering 2 billion adults, mostly women, remain outside the workforce altogether. In addition, too many people are working in low-paying, low-skilled jobs that contribute little to economic growth. Therefore, to end poverty and promote shared prosperity, we will need not just more jobs, but better jobs that employ workers from all walks of society.

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.

Four things you can do during Earth Hour to fight energy poverty

Andy Shuai Liu's picture



On March 19, millions of people across the globe will turn their lights off for one hour. For many, Earth Hour is a time to recognize and acknowledge the array of challenges our world faces on energy, climate, and poverty.

Well over a billion people still live without electricity. Almost 3 billion still use air-polluting and carbon-emitting solid fuels (such as wood, coal and dung) for cooking and heating.
 
Some of us have seen these numbers so many times, they no longer seem as alarming as they should. Their impact has worn thin... So to recognize this reality for millions of our fellow human beings and to raise awareness of energy poverty, here are a few things you can do for Earth Hour on Saturday, March 19:

Weekly wire: The global forum

Roxanne Bauer's picture

World of NewsThese are some of the views and reports relevant to our readers that caught our attention this week.

The 2015-16  Alliance for Affordable Internet Affordability Report
Alliance for Affordable Internet
Everyone should have access to the Internet. So concluded the 193 member states of the United Nations when they agreed on a new set of Sustainable Development Goals (SDGs) in September 2015. Underscoring the potential of the Internet to contribute to global development and empowerment, SDG target 9c calls for universal and affordable access in the world’s least developed countries by 2020. Reaching this goal will require bold and immediate action. On our current trajectory, A4AI predicts that we’ll only hit this target in 2042 — 22 years after the target date set by the global community. Without urgent reform, in 2020 we will see just 16% of people in the world’s poorest countries, and 53% of the world as a whole, connected. We won’t just miss the target, we’ll miss by a mile.
 
The Future of Jobs: Employment, Skills and Workforce Strategy for the Fourth Industrial Revolution
World Economic Forum
Today, we are at the beginning of a Fourth Industrial Revolution. Developments in genetics, artificial intelligence, robotics, nanotechnology, 3D printing and biotechnology, to name just a few, are all building on and amplifying one another. This will lay the foundation for a revolution more comprehensive and all-encompassing than anything we have ever seen. Smart systems—homes, factories, farms, grids or cities—will help tackle problems ranging from supply chain management to climate change. The rise of the sharing economy will allow people to monetize everything from their empty house to their car. While the impending change holds great promise, the patterns of consumption, production and employment created by it also pose major challenges requiring proactive adaptation by corporations, governments and individuals. Concurrent to the technological revolution are a set of broader socio-economic, geopolitical and demographic drivers of change, each interacting in multiple directions and intensifying one another.
 

Keeping the lights on– workable and unworkable approaches to electricity sector reform

Brian Levy's picture

Lethaba Power Station, South AfricaTwo decades ago, when I was working on utility sector reform we knew the answer. Here (using the example of electricity) is what it was: unbundle generation, transmission and distribution; introduce an independent regulator; rebalance prices; privatize. Two decades later, we have learned the stark limits of orchestrating reforms on the basis of ‘best practice’ blueprints such as these.

What would a more ‘with the grain’ approach to electricity sector reform look like? To explore this, I asked my Johns Hopkins SAIS and University of Cape Town students to review how a variety of country efforts unfolded in practice – focusing specifically on efforts to introduce private sector participation into electricity generation. Some striking patterns emerged.  Here I contrast South Africa’s experience with those of Kenya, Peru and Lebanon. The former illustrates powerfully the hazards of ‘best practice’ reforms; the latter point to the promise of  more incremental, cumulative, with the grain approaches.

In 1997, an official South African report signaled that in 2008 the lights would go out if there was no new investment in electricity generation; the report proposed that the country embark on a far-reaching effort to implement the ‘best practices’ template for electricity sector reform, constraining the dominant parastatal, ESKOM, and turning to the private sector for new investment in electricity generation. In 1998, the government adopted the report’s recommendations. In her richly-researched Masters dissertation (available on the link that follows), Nchimunya Hamukoma detailed what happened next.

Contestation over the agenda among competing factions within the ruling African National Congress and its allies interacted with a hugely-ambitious reform design — one for which almost none of the requisite political, institutional, economic and organizational capabilities were in place. The result was that after six futile years of trying, the effort at restructuring and private participation was abandoned, and ESKOM was given a green light to invest in new capacity. But the six lost years – the result of futilely pursuing an unachievable ‘best practice’ chimera – had an inevitable consequence. In 2008, as predicted, the lights went out.

Why “inefficiency” is needed in energy financing for Africa

Aaron Leopold's picture
Source: Andrew Heath for Practical Action

One of the most important findings noted at the Africa launch of the World Bank's Progress Toward Sustainable Energy: Global Tracking Framework 2015 (GTF) report for the Sustainable Energy for All initiative, is that despite recent trends to increase investment in the energy sector, we still need to double the number of new connections to modern energy services per year to reach universal access to energy by 2030.
 
Universalizing access to clean, modern energy services is at the heart of our ability to deliver on the new globally agreed sustainable development goals and climate agreements. Knowing this, the panel of experts discussing the findings of the report at the Africa Energy Indaba was asked a key question by Anita Marangoly George, Senior Director of the Bank's Energy and Extractives Global Practice - did we think achieving the universal access goal was possible in just a decade and a half?

Weekly wire: The global forum

Roxanne Bauer's picture

World of NewsThese are some of the views and reports relevant to our readers that caught our attention this week.

Corruption Perceptions Index 
Transparency International 
2015 showed that people working together can succeed in fighting corruption. Although corruption is still rife globally, more countries improved their scores in 2015 than declined. Five of the 10 most corrupt countries also rank among the 10 least peaceful places in the world. Northern Europe emerges well in the index – it’s home to four of the top five countries. But just because a country has a clean public sector at home, doesn’t mean it isn’t linked to corruption elsewhere.
 
An Economy For the 1%
Oxfam
The global inequality crisis is reaching new extremes. The richest 1% now have more wealth than the rest of the world combined. Power and privilege is being used to skew the economic system to increase the gap between the richest and the rest. A global network of tax havens further enables the richest individuals to hide $7.6 trillion. The fight against poverty will not be won until the inequality crisis is tackled.

Morocco raises stakes on combating climate change

Sameh Mobarek's picture
 
View over Ouarzazate city, Morocco. (Photo via ThinkStock)

While responsible for only a small share of global emissions, the country is taking big steps to curb them.

In the next few weeks, Morocco is preparing to commission the first phase of what will be the largest concentrated solar power plant of its kind in the world. The 510 MW Noor-Ouarzazate Concentrated Solar Power (CSP) complex was first conceived as part of the Moroccan Solar Plan (MSP) adopted in 2009 to significantly shift the country’s energy policy and climate change agenda, which is particularly relevant with the climate conference (COP21) happening in Paris. 

This is no small featcurrently, Morocco depends on fossil fuel imports for over 97 percent of its domestic power needs, making it particularly susceptible to regional conditions and volatility in oil prices.

The country is determined to change that, with plans to boost the amount of electricity it generates from renewable sources to 42 percent of its total capacity by 2020. This entails developing and commissioning at least 2,000 MW of solar and 2,000 MW of wind capacity in a relatively short timeframe. 

The Moroccan Agency for Solar Energy (MASEN) was established to implement MSP’s solar targets in conjunction with the Office National de l’Electricité et de l’Eau Potable (ONEE), Morocco’s national electricity and water utility.  Noor-Ouarzazate is the first of a series that MASEN expects to commission by 2020 to achieve its renewable energy target.

Jamaica, Kenya take cues from India on electrifying urban slums

Sunita Dubey's picture
Residents in Wazirpur, India share with us how electricity access has spurred their hope for a better, more dignified life. (Photo by TPDLL)
Residents in Wazirpur, India share with us how electricity access
has spurred their hope for a better, more dignified life. (Photo: TPDLL)
Rarely does one read about a private utility’s successful program to provide electricity to the urban poor. Rarer still is when the program is a profit-making venture and can serve as a learning experience for other countries around the world.
 
But an Indian private utility, Tata Power Delhi Distribution Limited, in New Delhi, has been successful in providing electricity to 217 slums—with 175,000 customers—by engaging with the community. It has reduced non-technical losses and improved its revenues from $0.3 million to $17.5 million over the last five years.

As part of an initiative by the World Bank’s Energy Sector Management Assistance Program (ESMAP) on expanding electricity access to the urban poor, there have been many knowledge exchanges between Brazil, Colombia, Kenya and Jamaica to learn from each other’s experiences and implement best practices. Recently, ESMAP’s team along with delegations from Jamaica and Kenya, visited Tata’s project in India to understand the reason behind their success.

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