Seizing the Window of Opportunity
February 01, 2006 — The extent of the impact of global warming might still be a subject of debate - but daily news referring to climate change reminds us of the challenges we face: from the shrinking of the Arctic and glacier retreats to more floods and droughts.
Carbon dioxide emissions continue to increase. Developing countries enjoying rapid economic development contribute to this growth. However, rich countries today are emitting 10 times more CO2 than developing countries. At current rates of change, the two degree increase in temperature and its associated problems appear to be a very real concern.
Renewable energy as well as energy efficiency could play an important role in mitigating these problems. The international community must begin to take action now to further incorporate renewable energy and energy efficiency into the world’s energy mix.
That’s the view of the World Bank’s Vice President for Infrastructure, Kathy Sierra – and the message she’ll be delivering to an energy policy forum in Mexico City today.
The International Grid-Connected Renewable Energy Policy Forum , which opens today and is on till February 3, is being staged by the Energy Ministry of Mexico, the Global Environment Facility, the World Bank, and the Energy Sector Management Assistance Programme (ESMAP) in association with the Global Wind Energy Council (GWEC).
Its key focus is to promote the increased use of renewable energy for grid power supply in the developing world.
Sierra says the benefits of renewable energy – such as hydropower, geothermal, biomass, wind and solar - are considerable. Although she says the environmental benefits are clear, less obvious is the mitigation of energy security problems, such as ensuring reliable supply of energy in its various forms.
“Renewable energy is part of the solution for some of the energy supply problems in the world today,” Sierra says.
“Access to modern energy is a key component of poverty reduction by enabling increased productivity as well as achieving the social objectives of the Millennium Development Goals- the international set of targets to be reached by the year 2015.
“We are seeing the need to have solutions to the climate change issues that are ahead of us and solutions for energy security – renewables are part of the solution.”
“The international community has now started to worry about these issues in a more robust way. Last summer the G8 meeting at Gleneagles put climate change on the agenda as a major international problem that has to be solved. This summer, the Russians are going to be leading the thinking about energy security as part of their initiative under the G8,” Sierra says.
Too Slow to Change
The reality though, Sierra says, is that in the developing world – where the majority of future energy growth must take place – the expansion of energy is occurring far too slowly to support the needed pace of development.
“If the rate of electrification of the past decade remains unchanged, it will take more than 40 years to electrify South Asia and almost twice as long for sub-Saharan Africa. This is unacceptable,” Sierra says.
“Basically we see that there are many economically viable opportunities for renewable energy in both developed and developing countries. But many of these technologies have not been used in developing countries on a significant commercial scale,” she says.
Security of the Poor
“When prices rise, the very security of the poor is threatened – the only viable response in some cases is simply to do without – this is unacceptable,” Sierra says. “Renewable energy can enhance a country’s energy security by reducing energy import requirements; reduce supply risks by diversifying its energy portfolio and protect precious financial resources.”
Sierra also heads to Mexico with another message – the economics of renewable energy are changing.
“Technology developments have improved renewable energy economics. In addition, energy that was considered expensive is relatively less so, as competing energy prices have increased. We’re seeing cost effective opportunities in hydropower, in geothermal, in biomass power, and in some wind and solar power applications,” she says.
Now is the Time to Invest
“Secondly, we need to seize the opportunity to invest in these new technologies. With typical energy infrastructure lifetimes of 20 years or more, decisions taken today will affect how energy impacts development and the environment for many years into the future. Now is the time to invest,” Sierra says. .
So what does Sierra, the Vice President for Infrastructure see as necessary for countries turning more to renewable energy?
“I think there’s knowledge about what technologies are out there, how best to plan for their adoption, how to finance them, and how best to use them. I think there are policies that developed and developing countries can put in place to try and spur this along. That’s a topic of the conference in Mexico.
“And finally, I think countries must be more strategic in terms of energy policy and reforms,” Sierra explains.
She says the private sector can also be a significant partner in the delivery of renewable energy – but only if countries have the right policies in place to help lower risks and improve investment conditions.
For its part, Sierra explains the Bank Group has provided significant investment and technical assistance financing for renewables and energy efficiency in partnership with GEF – Over US$9 billion were committed between fiscal years 1990 and 2005.
“Just as the financial year ended June 2005, our total commitment for all forms of renewable energy and energy efficiency was nearly three-quarters of a billion dollars, including108 million dollars from our partner, GEF. This commitment is expected to leverage an additional three billion dollars for project investment from the private sector, governments and other co-financiers,” she says.
© 2006 The World Bank Group
,
February 01, 2006 — The extent of the impact of global warming might still be a subject of debate - but daily news referring to climate change reminds us of the challenges we face: from the shrinking of the Arctic and glacier retreats to more floods and droughts.
Carbon dioxide emissions continue to increase. Developing countries enjoying rapid economic development contribute to this growth. However, rich countries today are emitting 10 times more CO2 than developing countries. At current rates of change, the two degree increase in temperature and its associated problems appear to be a very real concern.
Renewable energy as well as energy efficiency could play an important role in mitigating these problems. The international community must begin to take action now to further incorporate renewable energy and energy efficiency into the world’s energy mix.
That’s the view of the World Bank’s Vice President for Infrastructure, Kathy Sierra – and the message she’ll be delivering to an energy policy forum in Mexico City today.
The International Grid-Connected Renewable Energy Policy Forum , which opens today and is on till February 3, is being staged by the Energy Ministry of Mexico, the Global Environment Facility, the World Bank, and the Energy Sector Management Assistance Programme (ESMAP) in association with the Global Wind Energy Council (GWEC).
Its key focus is to promote the increased use of renewable energy for grid power supply in the developing world.
Sierra says the benefits of renewable energy – such as hydropower, geothermal, biomass, wind and solar - are considerable. Although she says the environmental benefits are clear, less obvious is the mitigation of energy security problems, such as ensuring reliable supply of energy in its various forms.
“Renewable energy is part of the solution for some of the energy supply problems in the world today,” Sierra says.
“Access to modern energy is a key component of poverty reduction by enabling increased productivity as well as achieving the social objectives of the Millennium Development Goals- the international set of targets to be reached by the year 2015.
“We are seeing the need to have solutions to the climate change issues that are ahead of us and solutions for energy security – renewables are part of the solution.”
“The international community has now started to worry about these issues in a more robust way. Last summer the G8 meeting at Gleneagles put climate change on the agenda as a major international problem that has to be solved. This summer, the Russians are going to be leading the thinking about energy security as part of their initiative under the G8,” Sierra says.
Too Slow to Change
The reality though, Sierra says, is that in the developing world – where the majority of future energy growth must take place – the expansion of energy is occurring far too slowly to support the needed pace of development.
“If the rate of electrification of the past decade remains unchanged, it will take more than 40 years to electrify South Asia and almost twice as long for sub-Saharan Africa. This is unacceptable,” Sierra says.
“Basically we see that there are many economically viable opportunities for renewable energy in both developed and developing countries. But many of these technologies have not been used in developing countries on a significant commercial scale,” she says.
Security of the Poor
“When prices rise, the very security of the poor is threatened – the only viable response in some cases is simply to do without – this is unacceptable,” Sierra says. “Renewable energy can enhance a country’s energy security by reducing energy import requirements; reduce supply risks by diversifying its energy portfolio and protect precious financial resources.”
Sierra also heads to Mexico with another message – the economics of renewable energy are changing.
“Technology developments have improved renewable energy economics. In addition, energy that was considered expensive is relatively less so, as competing energy prices have increased. We’re seeing cost effective opportunities in hydropower, in geothermal, in biomass power, and in some wind and solar power applications,” she says.
Now is the Time to Invest
“Secondly, we need to seize the opportunity to invest in these new technologies. With typical energy infrastructure lifetimes of 20 years or more, decisions taken today will affect how energy impacts development and the environment for many years into the future. Now is the time to invest,” Sierra says. .
So what does Sierra, the Vice President for Infrastructure see as necessary for countries turning more to renewable energy?
“I think there’s knowledge about what technologies are out there, how best to plan for their adoption, how to finance them, and how best to use them. I think there are policies that developed and developing countries can put in place to try and spur this along. That’s a topic of the conference in Mexico.
“And finally, I think countries must be more strategic in terms of energy policy and reforms,” Sierra explains.
She says the private sector can also be a significant partner in the delivery of renewable energy – but only if countries have the right policies in place to help lower risks and improve investment conditions.
For its part, Sierra explains the Bank Group has provided significant investment and technical assistance financing for renewables and energy efficiency in partnership with GEF – Over US$9 billion were committed between fiscal years 1990 and 2005.
“Just as the financial year ended June 2005, our total commitment for all forms of renewable energy and energy efficiency was nearly three-quarters of a billion dollars, including108 million dollars from our partner, GEF. This commitment is expected to leverage an additional three billion dollars for project investment from the private sector, governments and other co-financiers,” she says.
© 2006 The World Bank Group
,
