Connect with us

Energy News

Turning on the Lights for 450,000 People in Rural Myanmar

Published

on

More than 450,000 people in rural Myanmar are expected to gain access to clean energy for the first time following the signing of a grant agreement between the World Bank Group and the Government of Myanmar.

The Results-Based Financing for Off-grid Solar grant agreement, worth US$3.45 million, is co-funded by the Global Partnership for Results Based Approaches (GPRBA) and the Energy Sector Management Assistance Program (ESMAP). The grant will be implemented by the Department of Rural Development which will provide sub-grants to the private sector to develop supply chains for quality solar products.

This innovative pilot will help develop a commercial market for Lighting Global-certified quality solar products and support sustainable growth of the off-grid lighting market in rural, remote areas of Myanmar. Half the population of Myanmar lacks access to grid electricity.  In rural areas, where most people live, over two thirds of households rely on candles, kerosene, low-quality batteries and diesel generators to meet their energy needs.

“Energy access through off-grid solar technologies can play a key role in improving livelihoods and living conditions of people in rural areas,” said Mariam Sherman, the World Bank Country Director for Myanmar, Cambodia and Lao PDR. “The new grant will not only help deliver economic and social benefits for rural families, it will also contribute to social inclusion by providing affordable, quality solar products and by creating jobs through the expansion of supply chains in rural and remote areas.”

IFC – a member of the World Bank Group – supported the creation of the first commercial market for off-grid solar energy services in Myanmar under the Lighting Myanmar program, spurring the sale and financing of nearly 90,000 quality verified solar products. The grant funding will allow for further development of supply chains for quality lighting products in rural Myanmar, from companies to retailers and then onto consumers.

“This is timely support to help people and companies in Myanmar amid the impacts of COVID-19,” said Jane Xu, IFC Country Manager for Myanmar and Thailand. “Companies will be able to provide clean energy to those people in need, especially in rural and remote areas while creating jobs and income generation opportunities for retailers and local sales hubs, all to the people who need access to clean, affordable lighting.”

The funding will enable the poor to access end-user finance and post-sale services, helped by the pay-as-you-go mechanism that is being developed in Myanmar. IFC has provided support to help the private sector in Myanmar under the Lighting Myanmar initiative, through market research on people’s needs and willingness to pay for energy access, as well as on product quality assurance, support to business and access to finance.

The results-based financing (RBF) pilot, which aims to demonstrate a new private sector led business model for off-grid solar development, complements the World Bank-funded National Electrification Project (US$400 million IDA credit), which has provided electricity to more than 2 million people in Myanmar through grid, private sector led-mini-grid development and off-grid solar solutions for households, public institutions and street lighting implemented through public procurement.

Partnership with the private sector to develop off-grid solar solutions is critical for achieving the government of Myanmar’s universal energy access goal by 2030 as stipulated in the country’s National Electrification Plan.

About Lighting Myanmar:
Launched in 2016, the Lighting Myanmar project assists international and Myanmar-based companies in creating a sustainable market for Lighting Global quality-verified off-grid solar products in Myanmar. Drawing from experience in other Lighting Global programs, Lighting Myanmar works with product manufacturers, distributors, financial institutions, development partners, and the government in six areas: (1) quality assurance: (2) market intelligence; (3) business development support; (4) consumer education; (5) access to finance; and (6) regulatory and policy dialogue.

Continue Reading
Comments

Energy News

Seven Countries Account for Two-Thirds of Global Gas Flaring

Published

on

In an unprecedented year for the oil and gas industry, oil production declined by 8% in 2020, while global gas flaring reduced by 5%, according to satellite data compiled by the World Bank’s Global Gas Flaring Reduction Partnership (GGFR). Oil production dropped from 82 million barrels per day (b/d) in 2019 to 76 million b/d in 2020, as global gas flaring reduced from 150 billion cubic meters (bcm) in 2019 to 142 bcm in 2020. Nonetheless, the world still flared enough gas to power sub-Saharan Africa. The United States accounted for 70% of the global decline, with gas flaring falling by 32% from 2019 to 2020, due to an 8% drop in oil production, combined with new infrastructure to use gas that would otherwise be flared.

Gas flaring satellite data from 2020 reveals that Russia, Iraq, Iran, the United States, Algeria, Venezuela and Nigeria remain the top seven gas flaring countries for nine years running, since the first satellite was launched in 2012. These seven countries produce 40% of the world’s oil each year, but account for roughly two-thirds (65%) of global gas flaring. This trend is indicative of ongoing, though differing, challenges facing these countries. For example, the United States has thousands of individual flare sites, difficult to connect to a market, while a few high flaring oil fields in East Siberia in the Russian Federation are extremely remote, lacking the infrastructure to capture and transport the associated gas.

Gas flaring, the burning of natural gas associated with oil extraction, takes place due to a range of issues, from market and economic constraints, to a lack of appropriate regulation and political will. The practice results in a range of pollutants released into the atmosphere, including carbon dioxide, methane and black carbon (soot). The methane emissions from gas flaring contribute significantly to global warming in the short to medium term, because methane is over 80 times more powerful than carbon dioxide on a 20-year basis.

“In the wake of the COVID-19 pandemic, oil-dependent developing countries are feeling the pinch, with constrained revenues and budgets. But with gas flaring still releasing over 400 million tons of carbon dioxide equivalent emissions each year, now is the time for action. We must forge ahead with plans to dramatically reduce the direct emissions of the oil and gas sector, including from gas flaring,” said Demetrios Papathanasiou, Global Director for the Energy and Extractives Global Practice at the World Bank.

The World Bank’s GGFR is a trust fund and partnership of governments, oil companies, and multilateral organizations working to end routine gas flaring at oil production sites around the world. GGFR, in partnership with the U.S. National Oceanic and Atmospheric Administration (NOAA) and the Colorado School of Mines, has developed global gas flaring estimates based upon observations from two satellites, launched in 2012 and 2017. The advanced sensors of these satellites detect the heat emitted by gas flares as infrared emissions at global upstream oil and gas facilities.

“Awareness of gas flaring as a critical climate and resource management issue is greater than ever before. Almost 80 governments and oil companies have committed to Zero Routine Flaring within the next decade and some are also joining our global partnership, which is a very positive development. Gas flaring reduction projects require significant investment and take several years to produce results. In the lead-up to the next UN Climate Change conference in Glasgow, we continue to call upon oil-producing country governments and companies to place gas flaring reduction at the center of their climate action plans. To save the world from millions of tons of emissions a year, this 160-year-old industry practice must now come to an end.” said Zubin Bamji, Program Manager of the World Bank’s GGFR Partnership Trust Fund.

Continue Reading

Energy News

IEA supports Indonesia’s plans for deploying renewable energy

Published

on

The IEA is carrying out a large work programme on power system enhancement with the Government of Indonesia to help it modernise the country’s electricity sector, including support for overcoming challenges inherent in integrating variable renewables like wind and solar PV.

As part of the work programme, the IEA hosted a series of webinars in early 2021 where Indonesia’s Ministry of Energy and Mineral Resources and national power utility PLN could learn from other countries’ experiences of integrating and setting targets for variable renewable energy.

An introductory session on the principles of integrating renewable energy was held ahead of the country specific sessions. In this session, the IEA presented its framework for renewable integration phases to the Ministry and PLN, highlighting the different challenges often faced during renewable integration as well as what flexibility options can be deployed to tackle these challenges.

In the first country session, IEA presented the main findings of the Thailand flexibility study that the Agency carried out in cooperation with EGAT, the Thai electricity utility. The study shows that Thailand has the technical capability to integrate larger shares of variable renewables, but that the lack of commercial flexibility is a major barrier for operating the power system in a more flexible way and thus is the main obstacle for integrating large amounts of renewables.

In the second country session, the Danish Energy Agency presented its work programme with the Government of Viet Nam. The sessions focused on important aspects for integration of renewables, such as the assessing the needs and implications of reserves and forecasting. The session also included a discussion on the main learning points from the boom in rooftop solar that Viet Nam has experienced in 2020. 

The third and last country session was on India. The IEA presented both national as well as state-level modelling in order to show some of the contextual differences between national models and models that focus on specific geographical regions. In India, the spot market accounts for only 10% of electricity generation, which shows that India, like Thailand, has some issues with commercial flexibility. The discussion also covered India’s level of dependency on physical power purchase agreements and its impacts on the flexibility of the power system.

All sessions were held behind closed doors to allow for an open discussion between the participating organisations on the issues of renewable integration and possible ways of addressing barriers. The IEA will continue the work with the Indonesian Ministry and PLN on this topic in order to facilitate a path towards a clean, affordable, secure and modern power sector in Indonesia.

This work in Indonesia is undertaken within the Clean Energy Transitions in Emerging Economies programme.

Continue Reading

Energy News

Bangladesh Solar Home Systems Provide Clean Energy for 20 million People

Published

on

Bangladesh has the largest off-grid solar power program in the worldwhich offers experiences and lessons for other countries to expand access to clean and affordable electricity. By harnessing solar power, the program enabled 20 million Bangladeshis to access electricity.

The book, “Living in the Light- The Bangladesh Solar Home System Story”, launched today, documents how off-grid solar electrification was mainstreamed to a large segment of the population living in rural areas. Starting in 2003 as a 50,000 household pilot, the program at its peak, provided electricity to approximately 16 percent of the rural population.

“Bangladesh is known for its innovative development approaches. In remote and hard to reach areas, the government successfully introduced affordable off-grid renewable energy solutions through a public-private partnership. Clean electricity meant better health and living conditions for families and more study time for children,” said Mercy Tembon, World Bank Country Director for Bangladesh and Bhutan. “Our partnership with the government for this program spans nearly two decades, and now our support has expanded to include other renewable energy options.”

Successive financing through the Rural Electrification and Renewable Energy Development (RERED) Project, the World Bank supported the Infrastructure Development Company Ltd (IDCOL) to implement the program. IDCOL combined its expertise in infrastructure financing with Bangladesh’s pioneering work in micro-financing and private sector solar electrification initiatives to build a scalable off-grid electrification business model.  

“Our government is committed to driving up renewable energy and has a host of incentives such as tax breaks on offer to drive net-metered solar rooftop installation. As a business model Net Metering System is going to be popular day by day,” said Nasrul Hamid, Honorable State Minister, Ministry of Power, Energy and Mineral Resources, who attended the launching ceremony as the chief guest. He added, “Solar home systems (SHS) program has been critically important in achieving the ‘electricity for all’ vision. Under the leadership of  Hon’ble Prime Minister Sheikh Hasina, electrification of Grid area has already been completed and the whole country will be electrified within the ‘Mujib-year’.”

Between 2003 to 2018, the project reduced greenhouse gas (GHG) emissions by approximately 9.6 million tonnes of CO2 equivalent. The program helped reduce indoor air pollution by avoiding the consumption of 4.4 billion liters of kerosene.

“The RERED I and II projects promoted a sustainable market-driven approach where clean energy solutions were provided by local entrepreneurs with financing from IDCOL. 58 non-government organizations supplied and installed the solar home systems made affordable with micro-loans,” said Amit Jain, Senior Energy Specialist, World Bank and a co-author of the report. “The SHS Program demonstrated that millions of dollars mobilized at the international level can flow efficiently to the remotest corners of the country to offer loans in amounts as low as one hundred dollars, which enables a rural household to purchase a solar home system.”

Building on the success of the program, the World Bank extended support to scale up other clean renewable energy options including solar irrigation, solar mini-grids, roof-top solar, and solar farms. The World Bank financing in two consecutive RERED projects stands at $726 million.

The book analyzes the SHS Program’s organizational effectiveness, how partners were mobilized, how quality was enforced, how risks were mitigated, and how financial resources were raised and deployed as Bangladesh scaled up renewable energy use. It shares experiences and lessons that would be useful for other countries as they scale up solar off-grid electrification programs. 

Continue Reading

Publications

Latest

South Asia8 mins ago

The World Biggest COVID-19 Crisis: Failure of India’s Vaccine Diplomacy

As over 100 million people in the U.S. are fully vaccinated and the world’s daily count of new cases is...

Finance2 hours ago

New ways of thinking and working are necessary to reap blockchain benefits in capital markets

The World Economic Forum today released Digital Assets, Distributed Ledger Technology, and the Future of Capital Markets. Across the capital...

Development4 hours ago

Ukraine to Modernize Higher Education System with World Bank Support

The World Bank’s Board of Executive Directors approved today a $200 million project to support the Government of Ukraine’s efforts...

Tourism6 hours ago

New Report Shows Value of IP to the Tourism Sector

A new report published jointly by WIPO and the World Tourism Organization (UNWTO) on the value of intellectual property in...

Human Rights8 hours ago

155 million faced acute food insecurity in 2020, conflict the key driver

At least 155 million people faced crisis levels of food insecurity in 2020 because of conflict, extreme weather events and...

Reports10 hours ago

COVID-19 has reshaped last-mile logistics, with e-commerce deliveries rising 25% in 2020

COVID-19 has shifted the way people buy goods, accelerating the rise in online shopping and e-commerce deliveries. According to a...

Europe12 hours ago

Disconnecting From SWIFT? No, We Did Not Hear About It

The European Parliament has adopted another resolution on Russia. It reflects the key political claims against Moscow which have recently been on the...

Trending