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Millennium Development Goals and Millennium Development Goals and the PV Industry: Is the the PV Industry: Is the Motivation Self-Interest or Motivation Self-Interest or Selfless? Selfless? Anil Cabraal Lead Energy Specialist The World Bank Plenary Session: Global Aspects of PV Electricity 21 st European Photovoltaic Solar Energy Conference and Exhibition September 8, 2006

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Page 1: Millennium Development Goals and the PV Industry: Is the Motivation Self-Interest or Selfless? Anil Cabraal Lead Energy Specialist The World Bank Plenary

Millennium Development Goals Millennium Development Goals and the PV Industry: Is the and the PV Industry: Is the Motivation Self-Interest or Motivation Self-Interest or Selfless? Selfless?

Anil CabraalLead Energy Specialist

The World Bank

Plenary Session: Global Aspects of PV Electricity21st European Photovoltaic Solar Energy Conference and ExhibitionSeptember 8, 2006

Page 2: Millennium Development Goals and the PV Industry: Is the Motivation Self-Interest or Selfless? Anil Cabraal Lead Energy Specialist The World Bank Plenary

Outline

World Bank Group & Renewable Energy MDGs & Energy Access Challenge Potential for Off-grid PV Limitations of Current Approaches Recommendations Conclusions

Page 3: Millennium Development Goals and the PV Industry: Is the Motivation Self-Interest or Selfless? Anil Cabraal Lead Energy Specialist The World Bank Plenary

The World Bank Group

MIGA ICSID

InternationalFinance

Corporation (IFC)

InternationalDevelopmentAssociation

(IDA)

Two of the development objectives: Poverty Reduction and Environmental Improvement

Page 4: Millennium Development Goals and the PV Industry: Is the Motivation Self-Interest or Selfless? Anil Cabraal Lead Energy Specialist The World Bank Plenary

World Bank Group RE and EE Commitments

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1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Fiscal Year

Mill

ions

of D

olla

rs

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100

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700

800

900

Mill

ions

of D

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rs

WBG New RE & EE WBG Hydro>10MW Bonn Commitment for New RE & EE

Page 5: Millennium Development Goals and the PV Industry: Is the Motivation Self-Interest or Selfless? Anil Cabraal Lead Energy Specialist The World Bank Plenary

WBG Photovoltaic Projects

Serving >1,43 million HH + Facilities ~7.5 million persons ~64 MWp 31 Countries Total Value: ~$776 million

Includes projects completed, under implementation and preparation

Argentina 30,000Argentina 30,000Bolivia 60,000Bolivia 60,000Ecuador 2,200Ecuador 2,200

HondurasHondurasDominican Rep.Dominican Rep.

Mexico 1,000Mexico 1,000Mexico 36,000Mexico 36,000

Nicaragua 6,000Nicaragua 6,000

Bangladesh 198,000Bangladesh 198,000Cambodia 10,000Cambodia 10,000

China 400,000China 400,000India 45,000+India 45,000+

Indonesia 8,500Indonesia 8,500Laos 4,000Laos 4,000

Mongolia 50,000Mongolia 50,000Pacific Islands 21,000Pacific Islands 21,000Philippines 135,000Philippines 135,000

PNG 2,500PNG 2,500Sri Lanka 105,000Sri Lanka 105,000

VietnamVietnam

Burkina Faso 8,000Burkina Faso 8,000Cape Verde 4,500Cape Verde 4,500

Ethiopia 6,300Ethiopia 6,300KenyaKenya

Madagascar 15,000Madagascar 15,000Mali 10,000Mali 10,000

MoroccoMoroccoMozambique 9,800Mozambique 9,800

Senegal 10,000Senegal 10,000Swaziland 2,000Swaziland 2,000Uganda 90,000Uganda 90,000

Tanzania 140,000Tanzania 140,000

Page 6: Millennium Development Goals and the PV Industry: Is the Motivation Self-Interest or Selfless? Anil Cabraal Lead Energy Specialist The World Bank Plenary

The Electricity Access Challenge

Unelectrified Population Forecasts

-200400600800

1,0001,2001,4001,6001,800

2002 2015 IEA ReferenceScenario

2015 MDGAchievement Case

Mill

ions

of P

erso

ns

Africa South Asia East Asia & China Latin America Middle East

560 million additional persons must receive electricity services to meet MDG goals

Page 7: Millennium Development Goals and the PV Industry: Is the Motivation Self-Interest or Selfless? Anil Cabraal Lead Energy Specialist The World Bank Plenary

Potential for Off-Grid PV

Four out of Five people without access to electricity live in dispersed rural communities.Off-grid PV can:– Be less costly– Be deployed rapidly– Build on existing public and private institutional

capacity

Numerous opportunities for PV industry in developing world – For example…

Africa Access PlanChina Township & Village Electrification ProgramsIndia Rajiv Gandhi Rural Electrification ProgramPhilippines Missionary Electrification Development Plan

Page 8: Millennium Development Goals and the PV Industry: Is the Motivation Self-Interest or Selfless? Anil Cabraal Lead Energy Specialist The World Bank Plenary

Estimated Off-grid Installations: Business-as-Usual and Accelerated Market Growth Scenarios

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16020

05

2006

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2030

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tions

(Mill

ions

)

Business-as-Usual

Required

2030 "Universal Access" Target: 9%/ yr growth (2016- to 2030) -> 150 million off-grid households

2015 MDG Target: 32%/yr growth -> 17 million off-grid households

Page 9: Millennium Development Goals and the PV Industry: Is the Motivation Self-Interest or Selfless? Anil Cabraal Lead Energy Specialist The World Bank Plenary

Limitations of Current Approaches

High cost of non-competitive awardsLimited leverage of donor resourcesGive away systems - No ownershipParachute-in technology – inadequate attention to long term sustainabilityInadequate community consultationPilot projects too small to be sustainable

Page 10: Millennium Development Goals and the PV Industry: Is the Motivation Self-Interest or Selfless? Anil Cabraal Lead Energy Specialist The World Bank Plenary

Recommendations (1)

Convince decision-makers of value of PV for development

Build trust - Improve dialogue among key players, government, community, private sector

Build partnerships – local firms and financial institutions

Move from a project-oriented to market/ programmatic approach

Page 11: Millennium Development Goals and the PV Industry: Is the Motivation Self-Interest or Selfless? Anil Cabraal Lead Energy Specialist The World Bank Plenary

Recommendations (2)

Leverage funding

Adhere to quality standards for both products and services

Avoid technology dumping and ensure long term financial sustainability of investments

Arrange for long term operation

Take advantage of local capacities

Page 12: Millennium Development Goals and the PV Industry: Is the Motivation Self-Interest or Selfless? Anil Cabraal Lead Energy Specialist The World Bank Plenary

Conclusions

Many opportunities for PV industry in developing world to contribute to MDGs and increase business and profitably

Will require thinking beyond boundaries and timeframes of an individual project.

Page 13: Millennium Development Goals and the PV Industry: Is the Motivation Self-Interest or Selfless? Anil Cabraal Lead Energy Specialist The World Bank Plenary

Thank You!Thank You!

http://www.worldbank.org/energy http://www.worldbank.org/re

http://www.worldbank.org/retoolkit