ESMAP Business Plan, FY2025–30

ENERGY SECTOR MANAGEMENT ASSISTANCE PROGRAM BUSINESS PLAN, FY2025–30

1. The Evolving Global Context

The world has not fully recovered from the global shock of the pandemic and the subsequent economic and social disruptions. The energy sector, particularly in low- and middle-income countries, faces significant challenges. These challenges are compounded by the need to accelerate the energy transition to achieve Sustainable Development Goal 7 (SDG7), which aims to ensure access to affordable, reliable, sustainable, and modern energy for all.

2. Evolving World Bank Context

The World Bank continues to adapt its approach to support countries in achieving SDG7. ESMAP (Energy Sector Management Assistance Program) plays a crucial role in this context by providing analytical and advisory services to help shape World Bank strategies and programs aligned with the Climate Change Action Plan.

3. The Unique Role of ESMAP in the Global Energy Landscape

3.1 A Brief History of ESMAP

ESMAP was established as a partnership between the World Bank and over 20 partners to assist low- and middle-income countries in reducing poverty and boosting growth through sustainable energy solutions.

3.2 ESMAP’s Achievements: FY2021–24

During FY2021–24, ESMAP made significant strides in supporting energy access and transition initiatives. Key achievements include:

• Energy Access: Enhanced access to electricity and clean cooking solutions.
• Energy Transition: Promoted the adoption of renewable energy technologies.
• Decarbonization: Supported foundational efforts towards decarbonized energy systems.

3.3 New ESMAP Objective

The new objective focuses on accelerating the energy transition and ensuring sustainable energy solutions for all, aligning closely with SDG7.

3.4 ESMAP’s Updated Theory of Change and Proposed Areas of Focus

ESMAP’s updated theory of change emphasizes:

• Energy Access: Focusing on both electricity and clean cooking solutions.
• Energy Transition: Supporting the shift towards renewable energy sources.
• Decarbonized Energy Systems: Building the necessary foundations for a low-carbon future.

3.5 The Comparative Advantage of ESMAP

ESMAP’s comparative advantage lies in its ability to provide tailored, comprehensive support to clients, leveraging its extensive knowledge and expertise in the energy sector.

3.6 ESMAP’s Operating Principles

ESMAP operates based on principles of accountability, transparency, and collaboration, ensuring effective and sustainable outcomes.

4. ESMAP Focus Areas

4.1 Energy Access – Electricity and Clean Cooking

• The Challenge: Significant gaps in energy access, particularly in rural and remote areas.
• ESMAP Approach: Tailored solutions to enhance access to both electricity and clean cooking solutions.
• Workstreams: Specific initiatives to address these challenges.

4.2 Energy Transition

• The Challenge: Transitioning to renewable energy sources while ensuring grid stability and reliability.
• ESMAP Approach: Supporting the adoption of renewable energy technologies and innovative financial mechanisms.
• Workstreams: Specific initiatives to promote renewable energy deployment.

4.3 Foundations for Decarbonized Energy Systems

• The Challenge: Building the necessary infrastructure and policies for a decarbonized energy system.
• ESMAP Approach: Providing technical assistance and policy support.
• Workstreams: Specific initiatives to support decarbonization efforts.

5. ESMAP Organizational Excellence

ESMAP focuses on enhancing organizational excellence through:

• Communications: Effective internal and external communication.
• Advocacy, Convening, and Partnerships: Building and maintaining strong partnerships.
• Knowledge and Expertise: Leveraging expertise to drive impactful outcomes.
• Risk Management: Implementing robust risk management practices.

6. Financing the ESMAP Business Plan FY2025–30

6.1 Experience from the FY2021–24 Budget Cycle

ESMAP gained valuable insights from its previous budget cycle, which informed the current plan.

6.2 Proposed Budget for the FY2025–30 Business Plan

The proposed budget aims to support the outlined focus areas and achieve the set objectives. The budget is structured to cover various activities, including trust funds, donor contributions, and programmatic expenses.

6.3 Modular Approach to Recipient-Executed Budget Targets

The modular approach allows for flexibility and adaptability in achieving budget targets, ensuring that resources are effectively utilized.

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References

Appendices

• Appendix A: A Brief History of ESMAP
• Appendix B: ESMAP Risk Framework
• Appendix C: Results Framework

Abbreviations

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This summary provides an overview of ESMAP's strategic plan, focusing on key areas such as energy access, energy transition, and decarbonization, along with the financial and operational aspects of the program.