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
- 50,000,000.00 €
- Duration
- 12/2013 till 12/2027
- 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
- During 2021-2024, ESMAP mobilized $19 billion in external financing and helped the installation of 16.5-gigawatt renewable energy generation capacity—roughly equivalent to eight to 16 natural gas power plants. The projects ESMAP supported during this time are likely to reduce 711 million tons of CO2 emissions.
- Activities of ESMAP concerning the Energy Subsidy Reform Facility (ESRF) (www.esmap.org/…):
- ESRF funds provides technical assistance to governments on various aspects of energy subsidy reforms, including:
- Assessment of energy sector financial performance, quantification of energy subsidies, and fiscal transfers.
- Understanding economywide impacts of subsidies.
- Strengthening energy pricing frameworks to enable cost recovery.
- Identifying viable options for subsidy reduction and eventual removal; improving targeting and delivery of remaining subsidies.
- Developing options for enhancing social safety nets to protect poor and vulnerable households; providing advice on reducing utilities’ reliance on fiscal support.
- Developing stakeholder engagement and communications strategies.
- In 2024, ESRF provided $2.74 million in technical assistance grants, supporting activities in 33 countries and four regional initiatives. The portfolio concentrated on sector financial sustainability, sector diagnostics, distributional impact analysis, and mitigation measures for the impact of price reforms.
- ESRF funds provides technical assistance to governments on various aspects of energy subsidy reforms, including:
- Activities of ESMAP concerning the Supporting Coal Regions in Transition (www.esmap.org/…):
- ESMAP delivers technical assistance to countries while building regional peer-to-peer learning on sustainable coal transitions. The initiative supports governments in preserving and growing human capital by designing comprehensive social protection packages for potentially laid-off workers, developing re-skilling and job transition programs, and presenting potential pathways for economic transition.
- ESMAP has also worked closely with the Climate Investment Fund to develop the Accelerating Coal Transition (ACT) program that offers investment support and technical assistance to address decommissioning and repurposing of assets, social protection measures, social and economic development programs, and environmental reclamation.
- In 2024, ESMAP allocated $2.2 million in technical assistance grants to country and regional task teams for coal transition activities. This included five new initiatives and additional funding for three ongoing projects. 14 grants were active, with two closing during this period. Overall, the Coal Transition Initiative supported activities in nine countries and one global study.
- India: In 2024, two ESMAP grants supported India’s energy transition efforts, focusing on repurposing coal power plants. Preliminary screenings of four thermal power plants found them suitable for repurposing, totalling 2 GW of capacity. Baseline planning and transmission analysis for Bokaro were completed, and a study tour to the United States took place in October 2023. An Environmental and Social Management Framework for repurposing plants is ongoing. The grant also supported initial assessments for six out of eight abandoned mining sites using the Land Utilization Rating Application, with further studies in progress. These studies will help develop a comprehensive mine closure roadmap. Preliminary feasibility studies on pump storage power in two coal mines are in progress, with findings expected to support a pilot project.
- Indonesia: Since 2023, ESMAP has been supporting Indonesia’s Just Transition and Coal Plant Repurposing Program. The World Bank team is working with the government on scoping and prefeasibility studies for coal plant decommissioning and repurposing. In 2024, an options analysis of the early retirement of coal-fired power plants by Indonesia’s state-owned electric power distribution company PT Perusahaan Listrik Negara was completed. The findings informed the policy chapter of the Comprehensive Investment and Policy Plan under the Just Energy Transition Partnership, which the government adopted in November 2023.
- Study on stranded assets: In 2024, ESMAP conducted a global study on the costs of stranded assets in the power sector due to global decarbonization. The final paper presented a framework to identify and manage risks and costs associated with stranded coal-fired power plants.
Latest Update:
12/2025
Project relations
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