World Bank Group

Energy Strategy Update

Round-table Discussion World Bank Group

7 October 2010

GLOBAL CONSULTATIONS

Oct Jan-Sep

Aug Apr-May

2009 2010

Energy StrategyApproach Paperavailable on-line

First roundconsultation

s• Web-based• Face-to-

face

Sum-mer

2011

Feedback

summary

available on-line

Second round

consultations

• Web-based

Board of Executiv

e Directors

Sep–Dec

Drafting of

strategy

Improve operational and financial performance

Improve access and reliability of energy supplies

Facilitate shift to more

environmentally sustainable energy

sector development

Strengthen governance

OBJECTIVES & SUPPORTING PILLARS OF ENERGY STRATEGY

CONSULTATION PROCESS

• Governments, civil society organizations, private sector, industry associations, academia, research institutions, donor governments, aid organizations, other multilateral development organizations

• 58 face-to-face and VC meetings in 40 countries + about 170 written comments• Multi-stakeholder meetings –

Africa: Kenya, Mozambique Asia: Bangladesh, China, India, Indonesia, Japan, Lao PDR,

Sri Lanka, Vietnam Europe and Central Asia: Albania, Belgium, Denmark,

France, Germany, Kazakhstan, Netherlands, Norway, Russia, Turkey, UK, Ukraine

Latin America: Brazil, Mexico, Peru Middle East and North Africa: Egypt, Morocco, Tunisia USA

• Meetings with government agencies in Australia, Benin, Brazil, China, Denmark, Egypt, India, Japan, Saudi Arabia, Sweden

• Meetings with NGOs in Mozambique, Netherlands, Norway• 10 meetings with poor communities, with and without

electricity, in Liberia, Madagascar, and Togo in Jul–Sep

LESSONS OF THE CONSULTATIONS

• Consultations produced inputs reflecting wide range of expertise, experience, and perspectives

• Highlighted issues of widespread concern, region- and country-specific challenges, and controversial areas

• Provided a framework for public transnational discussion of energy

• Started a dialogue between the Bank Group and energy stakeholders worldwide

FEEDBACK RECEIVED

In All Meetings• Twin objectives appropriate• Pursue synergies wherever possible• Policy and regulatory work perhaps the Bank’s strongest

comparative advantage• Long-term, comprehensive energy planning missing in

many countries• Promote productive uses of energy, development of local

energy markets, helping the poor become suppliers and not just consumers of energy• Promote South-to-South knowledge and technology transfer

and cooperation• Help increase uptake of new technologies• Promote energy efficiency improvement and local

renewable energy, not only with financing but also through policy and technical advice and awareness-raising

FEEDBACK RECEIVED

In All Meetings• Give even greater priority to

• affordability (especially from developing country governments)• cooking and heating fuels, including sustainable wood

harvesting• capacity building across all areas of the energy sector• interlinkages to other sectors (transport, agriculture,

urban, water)• social engagement: gender, human rights,

empowerment, consultation, local community ownership and participation

FEEDBACK RECEIVED TO DATE

Issues with Divergent Views

8

Issue One end of spectrum The other end

Trade-offs between global and local

• For the poor, cheap energy is priority #1• No trade-offs in countries

with low emissions• Do not become another GEF

• False dichotomy• “Cheap” energy is not cheap if

externalities are included

Hydro power • Finance, because it meets twin objectives cost-effectively

• Stop lending for large hydro projects• Remove large hydro from RE

classification• Adopt WCD recommendations

Centralized vs. decentralized

• Promote large, centralized power aimed at lowering costs

• Stop financing large, centralized power projects, because they do not benefit the poor• Extend access through decentralized,

off-grid, small-scale RE

FEEDBACK RECEIVED TO DATE

Issues with Divergent Views

9

Issue One end of spectrum The other end

Coal • Invest to maximize efficiency in coal power generation (SC, USC, IGCC, renovation) and for CCS demonstration

• Lend for coal only in IDA• Stop lending for coal

immediatelyFossil fuels

• Work to make fossil fuel use as efficient as possible• Natural gas = bridging fuel

• Phase out lending for fossil fuels immediately or in the next 10 years• Adopt EIR recommendations

Nuclear • Finance• Develop internal capacity to provide

regulatory and other advice

• Do not finance

Low carbon targets

• Expand definition to include SC, USC• Too constraining, diverting resources

away from poverty reduction

• 50% RE by 2015 and 70% by 2020• 40% RE and another 40% EE

by 2015

HOW FEEDBACK IS BEING CONSIDERED

Internal Discussion•Discussion with each of the six regions, environment, forestry, transport, economic, and research departments, and IFC units•Working with the environment strategy team• Input to Africa biomass energy strategy

In the Strategy•Annex with a matrix of comments and response to comments• Key responses captured in the main text of the strategy