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Electrification Planning and Technology Options: the Case of Latin America

Xiaoping Wang

@ Nay Pyi Taw, MyanmarMay 31, 2013

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Evolution of LAC Electricity Access: 1970-2010

Source: IDB/OLADE

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Electricity Coverage Varies by Country: 2010

Source: IDB/OLADE

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0 5 10 15 20 25 300

20

40

60

80

100

E. Asia, 238

Europe, 34 LAC, 143

N. Africa, 21

S. Asia, 318 S.S Africa, 250

W. Asia, 54

S.E Asia, 64

Proportion of World Slum Population (%)

Prop

ortio

n of

Pop

ulati

on re

sidi

ng in

Urb

an A

reas

Note: Size of bubble denotes number of slum dwellers (Million, 2010) Source: UN Habitat Data Base

Urbanization and Slum Dwellers Pose Lose-lose Challenges for Both Users and Service Providers

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Access to Electricity is a High Political Priority in LAC

• Vision—Social Electrification

• Intermediate Goals

• Dedicated Institutions

• Mechanisms for Keeping Strategies Updated

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Countries with various rates of electrification have developed planning and implementation capacity

Typology Country Program

Low Access

Nicaragua National Electrification and Renewable Energy Program (PNESER)National Fund for the Development of the Electricity Industry (FODIEN)National electrification target: 84% (2017)

Honduras National Electrification Plan (PLANARES) – to be updatedSocial Electrification Fund (FOSODE)National electrification target: 80% (2015)

Bolivia “Electricity for a Decent Living” ProgramRural electrification target: 70% (2015); Universal (2025)Urban electrification target: Universal (2015)

Medium Access

Peru National Rural Electrification Plan (PNER)Cooperation Fund for Social Development (FONCODES)Rural electrification target: 95.8% (2022)

High Access

Brazil “Electricity for All” ProgramNational electrification target: Universal (2015)

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Off-grid applications are integrated into national electrification plans because of…

• Social Equity

• Balanced Regional Development

• Pre-electrification – bicycle vs. Mercedes

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Different Technology Options are Taken into Account in Least Cost Electrification Planning

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A Wide Range of Technologies are Employed in the World Bank Rural Electrification Projects in LAC

Country Grid Extension Densification SHSs Micro-

hydro Others

Nicaragua     PERZA

Honduras PIR + AF   PIR + AF

Bolivia   IDTR I + II    

Perú FONER I + II  

México     Integrated Energy Services  

Argentina     PERMER I + II

Chile   Territorial Development

Haiti REIA REIA

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There is Need to Enabling Better Energy Access in Urban and Peri-Urban Areas

• Link with city development strategies

• Multi stakeholder collaboration• Strong political will• A regulatory framework

supporting access for the urban poor

• Change in mindset of slum dwellers

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Summary: Lessons Learned

• Political commitment to provision of energy services and social equity is essential

• Developing planning and implementation capacity is a key enabler

• National electrification plan is a guiding document and should be kept updated

• Off-grid technologies are cost-effective for certain segments of users, and complements grid extension

• Provision of reliable, sustainable energy services in peri-urban and urban areas remain great challenges and requires multi-stakeholder, multi-sector approaches.

Thank YouThe World Bank | 1818 H Street, NW | Washington DC, USA

www.worldbank.org|www.esmap.org

XIAOPING WANG, XWANG3@WORLDBANK.ORG