SCALING UP RENEWABLE ENERGY PROGRAM
MORE THAN 1.2 BILLION PEOPLE WORLDWIDE LIVE WITHOUT ELECTRICITY, AND 2.7 BILLION PEOPLE RELY ON TRADITIONAL BIOMASS FOR COOKING AND HEATING. RENEWABLE ENERGY HOLDS THE PROMISE OF INCREASED ENERGY ACCESS AND ECONOMIC GROWTH WHILE REDUCING GREENHOUSE GAS EMISSIONS AND DEPENDENCE ON FOSSIL FUELS.
ESTABLISHED IN 2008, THE $8.3 BILLION CLIMATE INVESTMENT FUNDS (CIF) ADDRESS THESE CHALLENGES BY DELIVERING INVESTMENTS AT SCALE TO EMPOWER CLIMATE-SMART TRANSFORMATION.
This global overview shows a major contribution of geothermal projects to the expected electricity production.
76 % of targeted energy access improvement is expected to be derived from on-grid connections. There are three large geothermal on-grid projects in Kenya, Ethiopia, and Armenia now are reporting on results.
*Our Improved Energy Access Numbers Explained
**Our Electricity Output Numbers Explained
The only project that is reporting on actual electricity produced is the Self-Supply RE Guarantee Program in Honduras, with 276 MWh produced and 174 tons of CO2 equivalent avoided. It is the first SREP project in operation from October 2015, with an solar PV installed capacity of 0.9 MW (see Box 1).
Two projects are reporting on actual improved energy access: The South Asia Subregional Economic Cooperation Power System Expansion Project in Nepal, benefiting 6,600 people (see Box 2) and the Sustainable Rural Energization Program (ERUS)-Part I & III: Promoting Sustainable Business Models for Clean Cookstoves Dissemination in Honduras, benefiting 795 people (see Box 3). These projects are described in the section for core indicator 2.
Photo: World Bank
Total funding: USD 5.5 million
Annual electricity output target: 45,000 MWh/yr
Achieved results: 276 MWh/yr
Photos: Inversiones Materiales S.A. de C.V
This program is in operation since October 2015, and while still in its early phase, it is the first SREP project that has started to deliver actual results on annual electricity output.
Small-scale self-supply renewable energy systems are widely regarded as low-cost cost opportunities to mitigate climate change, but are “still hard to reach” so risk mitigation and technical cooperation resources are needed to support first movers.
The program aims to provide risk-sharing instruments (first-loss guarantees mainly, and co-financing resources in certain cases) for loans from the IDB Group and/or other financial institutions, improving the credit profile of the projects and allowing their implementation through access to appropriate finance.
The IDB Group expects to support approximately USD 40 million of investment in self-supply renewable energy projects. These will help
establish local engineering capacity, catalyze the development of supply chains for equipment procurement, and demonstrate the market potential (biogas, small-scale biomass and solar PV) to local financial institutions.
It may also support new business models such as third-party finance of projects within companies’ facilities. The program will directly support at least 10 companies to supply their own renewable energy.
Total funding: USD 11.8 million
Annual electricity output target: 143,350 MWh/yr
Achieved results: 6,600 MWh/yr
The project will scale up electricity access using renewable energy-based mini-grids systems, and ensure sustainable operations through capacity development. The project is providing access to electricity and facilitating productive end uses of energy at the “bottom of the pyramid” in rural locations, which are well beyond the “last mile” of the grid.
About 1,500 households, or 6,600 people, are already benefiting from installation of lighting and mobile radio charging system, displacing diesel and gasoline use in generator sets and kerosene for lighting.
Two packages have been awarded for lighting and mobile/radio charging
systems (USD 0.09 million) and wind mast (USD 0.037million). Draft bidding documents for one sample mini hydro sub project and one solar/wind hybrid subproject are being finalized.
Total funding: USD 2.95 million
Annual electricity output target: 375,000 MWh/yr
Achieved results: 795 MWh/yr
Photo: Fundación VIDA/Profogones
The program will benefit rural communities, providing high-efficiency, wood burning cook stoves for 70,000 households, which will reduce consumption and cost of firewood for project beneficiaries by 60 percent, and improve living standards.
The first cook stoves were delivered on December 18, 2015, so figures are still low in the reporting period.
In addition to convenience and reduced wood consumption, the cook stoves will provide health benefits, particularly for women and children who are presently exposed to harmful smoke and gases produced by inefficient burning of firewood in traditional stoves. Women and children will also spend less time collecting and processing firewood, which will increase opportunities to work, attend school, or participate more actively in community affairs.
The program will generate experience in providing models for mass distribution of improved stoves that will be replicable in the other Central American countries.
In Kenya, the Menengai Geothermal project aims to meet Kenya’s rapidly increasing demand for power by developing the Menengai steam field for 400 MW power. However, a recent feasibility study concluded that the actual well potential of the site for sustainable production is about of 150 MW gross for 25 years at a total mass extraction flow rate of 1,180 tons/h.
Thirty-two wells have been drilled and 54 people have been trained on drilling technologies, geoscience, donor procurement, and finance. The Government of Kenya via is planning first-stage development of 100 MW power generation by end 2016. Given the overall progress of the project, this objective is expected to be achieved.
In Ethiopia, two geothermal wells have been drilled and tested under the Geothermal Sector Development Project. The preparation of Aluto site is ongoing, with the construction of storage warehouses, a water reservoir, and access roads. The project will confirm geothermal capacity for power generation, but the construction of the power plant is not within thescope of this project.
There are five MDB approved projects, whose primary objective is to strengthen the enabling environment for investments in clean energy and energy access. These projects will contribute indirectly to the achievement of the two core indicators.
The $839 million Scaling Up Renewable Energy Program (SREP), a funding window of the CIF, is empowering transformation in developing countries by demonstrating the economic, social and environmental viability of renewable energy.
Channeled through five multilateral development banks (MDBs), SREP financing supports scaled-up deployment of renewable energy solutions to increase energy access and economic opportunities.
To date, $264 million is approved and under implementation for 23 projects and programs, expecting $1.9 billion in co-financing from other sources. The SREP employs a programmatic approach that builds of national policies and existing energy initiatives.