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close this bookRural Energy and Development: Improving Energy Supply for Two Billion People (WB, 1996, 132 p.)
close this folderChapter seven - The role of the world bank group
View the document(introduction...)
View the documentPolicies and operations since the 1970s
View the documentRural electrification
View the documentThe sustainable in a production and use of wood-fuels
View the documentRenewable energy
View the documentProject innovations and advisory services
View the documentThe way forward: a renewed commitment by the world bank group
View the documentBroadening the scope of energy sector reform
View the documentInvestments
View the documentOpportunities for partnerships

Project innovations and advisory services

Often an advisory activity or a successful pilot program provides the basis for a fuller Bank operation in rural energy. The Bank has often carried out such work through special bilateral. donor-supported programs, such as ESMAP, ASTAE. and the Africa Review of Policies in the Traditional Energy Sector. For example. the household energy strategy technical assistance. conducted in Niger under ESMAP. was the basis for a project subcomponent on household energy and urban fuelwood management systems in a power loan. In India. a review of renewable energy alternatives under ESMAP led to the development of the Bank's first project explicitly for renewable energy. The Africa Review of Policies in the Traditional Energy Sector has identified policies important for natural resource management and traditional energy use in West Africa. In Chad. Comoros, Kenya. Madagascar. and Rwanda. a special Bank program for nonconventional energy. supported by Dutch grants, has identified and mainstreamed traditional energy and renewable project components. The donor-supported ASTAE program has done the preparatory groundwork for innovative small rural systems in India. Sri Lanka. and elsewhere in Asia. Finally, the Bank's recently launched Solar Initiative. supported by donors and the energy industry. is identifying decentralized rural projects in China. Latin America. the Middle East. Southern Africa, and West Africa. Table 7.1 presents examples of Bank projects and programs that have increased access to rural energy.

A direct consequence of ESMAP's work has been an increase in World Bank lending operations that incorporate specific household energy components. By the end of 1995. ESMAP had designed household energy components of energy sector loans or credits in ten countries (Bolivia, Burundi, Ethiopia, Guinea. Haiti, Madagascar; Mali, Mauritania. Niger. and Rwanda) for a total of US$46 million. ESMAP studies also laid the groundwork for renewable energy investment in India and Mauritius for a total of US$240 million. ESMAP's training activities in financial and economic analysis, rural energy policy analysis. and rural survey work. include the development of training manuals and follow-up support activities. also contributed to the for mutation of China's rural energy program (US$1.5 billion). Other similar activities are in the pipeline (Cameroon, Chad, China. and Vietnam), and these could lead to investments of US$75 million.

Also with the financial support of bilateral donors, in particular the Netherlands, two other Bank programs are actively advancing activities in the fields of traditional energy and renewable energy. The Review of Policies in the Traditional Energy Sector, which was launched in 1993, has led to policy and project formulation in five Sahelian countries, and this work will be extended to other African countries (Burkina Faso. Senegal). Estimates indicate that the resulting investments will amount to some US$40 million. ASTAE. which started in 1992. has helped the Bank's Asia region with developing energy components or stand-alone projects for renewable energy in countries such as India (US$280 million), and is preparing similar projects in Indonesia (US$260 million), Sri Lanka (US$50 million). and. in cooperation with ESMAP, in China (US$150 million).