World Bank to boost energy transition in East Asia, Pacific with $2.5b programme

This will fund around 2.5 GW of additional renewable energy.

The World Bank has announced its $2.5b Accelerating Sustainable Energy Transition Program that will fuel the shift of developing countries across East Asia and Pacific to renewable energy.

According to the organisation, the programme will add 2.5 gigawatts of renewable energy capacity which is equal to 50 utility-scale solar farms or more than 1,000 wind turbines. This is expected to reduce carbon emissions by 60 million tonnes whilst providing over 20 million people with new or improved access to clean electricity.

"This program is part of the World Bank's global effort to combat climate change through an accelerated energy transition. Other development partners are expected to join this platform for financing and knowledge to scale up impact,” said Manuela Ferro, vice president for East Asia and Pacific at World Bank.

Under the initial phase, there will be $260m worth of grants and credits that will increase access to renewable energy and enhance the reliability of electricity supply in Papua New Guinea. This will also boost clean energy generation and improve the reliability and quality of electricity service in parts of the Republic of Marshall Islands. 

Another $5m grant, to be implemented by the ASEAN Centre for Energy, will be issued to accelerate the scale-up of renewable energy and foster cross border electricity trade among ASEAN countries. 

Future phases of the funding will cover Cambodia, the Federated States of Micronesia, Indonesia, and Mongolia.