1. Overview of Energy Sector Activities of the World Bank Nataliya Kulichenko Senior Energy Specialist Sustainable Energy Department Workshop on Carbon Capture and Storage: Perspectives for the Southern Africa Region Johannesburg May 31 st – June 1 st 2011

2. Rapidly Growing Portfolio WBG energy financing exceeded $13 billion in last fiscal year. Up from $2.3 billion eight years ago. All sources: 40% IBRD 21% IDA 26% IFC 4% MIGA 5% Climate Finance 4% Other sources Johannesburg 31/05/11

3. More financing from more sources. More partners working together. Financing Geothermal in Africa, Indonesia Concentrating solar power (CSP) Carbon Capture and Storage (CCS) Technology & Approaches Rapidly Growing Portfolio Johannesburg 31/05/11

4. Partnerships Global Environmental Facility Carbon Finance Clean technology Fund (CTF) Scaling Up Renewable Energy (SREP) Trust Funds Johannesburg 31/05/2011

5. Pioneering SWAP in Rwanda 6% of households have grid supply, but high density – 320 p/km 2 Estimated capital costs of $378 million to 2013 $357 million pledged by 12 donors + GoR 706K new connections, 433MW new generation by 2020. Examples of Projects Johannesburg 31/05/11

6. Geothermal Kenya Addition of 280 MW of installed geothermal capacity at Olkaria Indonesia Financed through IBRD loan and CTF Construction of 110MW and 40MW plants Johannesburg 31/05/11 Examples of Projects

7. Concentrating Solar Power (CSP) Joint WB/GEF support for two hybrid Integrated Solar Combined Cycle plants in Egypt and Morocco, each with a 20 MW CSP component.  Provided significant lessons learnt in terms of procurement and local manufacturing possibilities Global CSP Program (TF funded) to enhance understanding of barriers to CSP deployment  Informs government policy on creation of suitable regulatory and financial incentive CTF Regional Investment Plan for CSP in MENA region aiming to support deployment of 1GW CTF support to South Africa CSP demonstration project of about 100 MW India CSP Program to support the implementation of Jawaharlal Nehru National Solar Mission Johannesburg 31/05/11 Examples of Projects

8. Carbon Capture and Storage Capacity Building Trust Fund Source Image: Vattenfall, Schwarze Pumpe Johannesburg 31/05/11 Examples of Projects

9. World Bank Activities: CCS Trust Fund Two core elements guiding its work at the international, regional and national levels:  Capacity building and knowledge sharing assistance regarding CCS,  Carbon asset creation services. In co-operation with leading international and bilateral initiatives (Global CCS Institute, Carbon Sequestration Leadership Forum, IEA Programs and others) Total capitalization of the Trust Fund is $11 million:  Government of Norway – $9 million,  Global CCS Institute – $2 million. The work program consists of the following two components:  Country-level component focusing on nine country- or project-specific activities ($6.9m)  Analytical component: regional regulatory, economic and financial instruments analyses, July 2010 – June 2011 ($0.61m) CCS TF structure and work program Main objectives of the CCS TF Johannesburg 31/05/11

10. Nine country projects South Africa Botswana Maghreb Kosovo China Indonesia India Jordan Egypt Johannesburg 31/05/11

11. Work Program - Country level activities  Projects include:  Assessments of geological storage  Training and workshops  Assessments of applicability of capture technologies Country/regionAmount allocated (US $m) Botswana1.4 Republic of South Africa1.1 China1.8 Kosovo0.4 Indonesia0.85 India0.5 Egypt0.3 Jordan0.15 Maghreb0.4 TOTAL6.9 Johannesburg 31/05/11

12. Examples of country work program Botswana Project activities include  Identification of sites suitable for CCS geological storage or enhanced coal bed methane recovery  Formation of the Carbon Working Group  Creation of a sustainable Carbon Secretariat as part of the ministerial structure  Organization of at least 3 thematic workshops Work Program - Country level activities Johannesburg 31/05/11

13. Examples of country work program South Africa Project activities include  advance the work already carried out in identifying storage sites from the current theoretical storage  technical feasibility assessment for deployment of storage technologies  of a scoping study and business plan for the first test injection  review of regulatory and institutional adjustments Work Program - Country level activities Johannesburg 31/05/11

14. Examples of country work program Jordan  Project activities include  Assessment of potential for CCS activities, such as CO2 sequestration in oil shale  Assessment of institutional capacity for CCS  Recommendations on capacity-building activities  Identification of barriers to CCS development and applications Work Program - Country level activities Johannesburg 31/05/11

15. Examples of country work program Kosovo Project activities include  Scoping study of geological storage potential  Pre-feasibility study for CO2 capture at the proposed KRPP  Training and thematic workshops for key CCS stakeholders Work Program - Country level activities Johannesburg 31/05/11

16. Analytical study: Carbon Capture and Storage: Regional Perspectives in developing countries Work program elementLocation and scale 1Review of Regulatory and Institutional Frameworks on CCS in the Southern Africa and Balkan regions Regional, sector scale 2Techo-economic assessment of CCS deployment in power systems in the Southern Africa and Balkan regions Regional, sector scale 3Assessment of climate finance sources to accelerate CCS deployment in developing countries Global, sector scale 4Financing model for CCS projectsProject scale The final report on the ESW work will be completed by July 2011 Johannesburg 31/05/11

17. World Bank CCS Trust Fund Events Dubrovnik workshop May 4-5 Johannesburg workshop May 31 st – June 1st Washington DC workshop at World Bank Group HQ September 7-8 Johannesburg 31/05/11

18. To inform potential CCS stakeholders in the Southern Africa region on the latest CCS developments potential prospects for CCS in the region opportunities for capacity building To promote knowledge sharing and encourage information exchange among local participants and international organizations with experience in CCS technological, financial and regulatory issues To learn the CCS capacity building needs in Southern Africa Johannesburg 31/05/11 Johannesburg workshop objectives

19. A breakout session to discuss your feedback on: potential for employing CCS as a climate mitigation technology in the region barriers to employing CCS technology capacity building needs in the region and/or specific countries Can provide appropriate contacts and information in CCS capacity building activities Johannesburg 31/05/11 Next steps

20. Thank you Johannesburg 31/05/11

21. Back up slides Johannesburg 31/05/11

22. Clean Technology Fund Finance scaled-up demonstration, deployment and transfer of low carbon technologies Strategic Climate Fund Targeted programs with dedicated funding to pilot new approaches with potential for scaling up Pilot Program for Climate Resilience Mainstream climate resilience into core development planning Forest Investment Program Reduce emissions from deforestation and forest degradation Scaling Up Renewable Energy in Low Income Countries Initiate transformational change by use of renewable energy ±$1.8 billion Investment Plans ±$4.3 billion Support country and regional development strategies Leverage financial products of Multilateral Development Banks Stimulate private sector engagement Climate Investment Funds Johannesburg 31/05/11

23. CTF: Distribution by Technologies Johannesburg 31/05/11

24. CTF: Allocation by Countries

25. CTF: Examples of Investments Financial Intermediary operation for RE/EE: Turkey Utility-Scale CSP: South Africa, MENA Wind: South Africa, Egypt RE: Thailand Energy Efficiency: Mexico, Thailand, Smart Grid: Turkey, Ukraine and Vietnam Geothermal: Indonesia Low Carbon Urban Transformation: Thailand Bus Rapid Transit: in Egypt, Mexico, Philippines and Thailand Johannesburg 31/05/11

26. SCF: Scaling Up Renewable Energy Program in Low Income Countries(SREP) Measuring Success Remove barriers to renewable energy Lead to replication of renewable energy investments Increase installed renewable energy capacity in a country’s energy supply Purpose ― To pilot and demonstrate the economic, social and environmental viability of low carbon development pathways in the energy sector by creating new economic opportunities and increasing energy access through the use of renewable energy Scale ― $310 million in pledges for significant programs of capacity building and investments in renewable energy Johannesburg 31/05/11

27. SREP Pilot Countries $ 60 million in reserve Criteria for allocation of the reserve to be developed Initial six countries selected Ethiopia: $ 25 million – 50 million Honduras: $ 25 million – 30 million Kenya: $ 25 million – 50 million Maldives: $ 25 million – 30 million Mali: $ 25 million – 40 million Nepal : $ 25 million – 40 million

28. SREP Pilot Countries II Subject to availability of funds Additional six pilots selected Armenia Liberia Mongolia Pacific regional program Tanzania Yemen