Energy Sector Management Assistance Program (ESMAP)
Energy transition requires major private investments in renewable energies, increasing energy efficiency and decarbonizing hard-to-abate sectors to meet climate goals. The Energy Sector Management Assistance Programme (ESMAP) focus on supporting countries in developing, financing, and implementing a just and affordable energy transition by allocating public resources to maximize social impacts, as well as leveraging private investments. ESMAP supports among others the energy transition, through scaling up renewable energy, storage, energy efficiency and decarbonisation of end-use sectors, as well as the foundations for decarbonized energy systems.
- IKI funding
- 53,700,000.00 €
- Duration
- 12/2013 till 12/2035
- Status
- open
- Implementing organisation
- The World Bank Group
- Political Partner
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- Diverse climate change relevant institutions in the respective partner countries/Diverse klimarelevante Institutionen in den entsprechenden Partnerländern
- Online
State of implementation/results
- Between 2021 and 2024, ESMAP mobilised US$19 billion in external funding and supported the installation of 16.5 gigawatts of renewable energy generation capacity – equivalent to roughly eight to 16 natural gas-fired power stations. The projects supported by ESMAP during this period are expected to reduce CO₂ emissions by 711 million tonnes.
- In 2025, ESMAP worked on the following areas, amongst others:
- Infrastructure and Modernised Energy Systems:
- ESMAP is driving the modernisation of energy infrastructure, advising on digital grid transformation, utilising advanced data analytics and developing new business and governance models to strengthen the performance and climate resilience of utility companies and enable the integration of decentralised energy sources.
- For example, in Cape Town, South Africa, ESMAP drew up a roadmap for a smart grid, assessed existing systems, identified weaknesses in data quality and cyber security, and provided recommendations for IT upgrades. Training was provided for staff; the roadmap now serves as a model for other South African local authorities seeking to introduce digital grids and decentralised energy sources.
- Reform Facility – Energy Subsidy Reform Facility (ESRF):
- ESMAP has supported governments in reforming energy subsidies by publishing eight policy papers on macroeconomics, social protection, distributional impacts, business effects, political economy and carbon pricing. As part of World Bank projects, ESMAP advised countries, drew up reform roadmaps, introduced cost-reflective tariffs and strengthened the financial position of utility companies.
- One example is Ecuador: in July 2024, petrol subsidies were abolished and replaced by market-oriented prices with a compensation formula, saving around USD 600 million annually. ESMAP provided the analysis on pricing, stakeholder engagement and social impacts. The measure is part of a comprehensive plan to end all fuel subsidies and reform electricity tariffs to promote investment in renewable energy and grid infrastructure.
- Scaling up Renewable Energy, Storage and Clean Hydrogen (SRMI):
- Launched in 2018, SRMI brings together the World Bank Group’s ESMAP, AFD, IRENA, ISA, SEforALL, ADB, AfDB, EBRD and GIZ. SRMI supports countries in building a pipeline of bankable renewable energy projects by addressing critical risks, unlocking private investment and maximising socio-economic benefits.
- In 2025, ESMAP’s SRMI mobilised US$150 million in low-interest climate finance from the Climate Investment Fund (CIF). These funds attract US$1.45 billion in co-financing from multilateral development banks and the private sector, representing a leverage ratio of 1 to 10. The projects supported by the SRMI will reduce emissions by 30 million tCO2eq over 25 years. The initiative enables 1.7 GW of installed renewable energy capacity, 200 MWh of energy storage systems and a power rating of 60 MW for storage.
- Scaling up Energy Efficiency – Urban Energy Efficiency and Decarbonisation of Energy Use (SEEDS):
- ESMAP provides grants and technical support for energy efficiency and the decarbonisation of industry. The focus includes, amongst other things, urban planning, urban regulation, clean cooling technology, floating photovoltaic systems along coastlines and the decarbonisation of industry.
- For example, in 2025 ESMAP completed a market analysis for heat pumps in Turkey, mapped the geothermal potential and determined the heating and cooling requirements. The findings support the second Turkish project on energy efficiency in public buildings, which promotes the replacement of fossil-fuel boilers with heat pumps and provides advice on higher building standards.
- Infrastructure and Modernised Energy Systems:
Latest Update:
09/2026
Project relations
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