Sustainable Green Growth in Central America

Project Summary:

The Central American economies are energy intensive and electricity demand is expected to grow fast in the mid-term. The region is need to increase preparedness to adequately meet the growing demand, and support the countries’ growth and development. This project aimed to support countries in the region to develop potential strategies through analytical work, and inform the creation of an enabling environment for Energy Efficiency initiatives to flourish and indigenous RE resources to develop in a sound manner. The project team cooperated with IFC, MIGA, IBRD, as well as other financial sources like KEXIM or KOICA to catalyze new public and private investment to the power sector by de-risking these technologies from both financial and technical perspectives. The ample expertise of Korean institutions and companies in the RE and Energy Efficiency sectors, their participation in technical exchanges with Central American countries was essential for the successful delivery of the expected outcomes of the operation.

The grant funded countries also include Nicaragua, El Salvador, Costa Rica, and Panama.

List of Activities:

1. Adequate integration of variable RE in Central America
   1. Analytical study on Variable RE Integration
   2. Analytical study on Variable RE Integration in Central America at regional level by an enhanced connectivity of markets/systems
   3. Support through information and communication technologies for a proper integration of RE into the electric grid
   4. Analysis of strategies to enhance the legal and regulatory framework for an improved integration of RE
2. Improving energy demand management and promoting new Energy Efficiency programs and regulation
   1. Improving energy demand management and promoting new Energy Efficiency programs and regulation
3. Capacity Building
   1. Increasing capacity of the Governments in Central America to plan, implement and monitor RE and EE programs
   2. Annual regional Forum and technical exchange workshops on RE and EE
4. Donor and KGGP Visibility
   1. Dissemination of KGGP funded activities

Outcomes:

Output 1:

• 1.1. Analytical report on VRE integration
• 1.2. Analytical study report on regional VRE Integration
• 1.3. Assessment report on the ICT required for a proper integration of RE 
• 1.4. Analytical report on legal and regulatory framework for RE

Output 2:

• 2.1. Report on initiatives for future EE and RE pilot programs

Output 3:

• 3.1. Knowledge exchanges on RE and EE programs
• 3.2. Annual Forum and technical exchange workshops on RE and EE

Output 4:

• 4.1. Study tour and dissemination materials

Outcomes:

The project will support scaling up the Climate Smart and Green Agriculture Technologies by leveraging digital technologies with at least 100,000 farmers. Other expected outcomes include enhanced capacity within the Ministry of Agriculture at the national level and country level and KALRO on the use of Big Data, AI, and the overall Digitization Agenda in Kenya. Application of Korea’s expertise in Climate Smart Agriculture by mainstreaming climate smart and green technologies in Kenya is also expected from this grant.

Collaboration with K-Partners and Others:

• WBG internal partners: the regional Country Management Unit to support the generation of dialogue facilitation in the energy sector, preparation of new environmentally-friendly operations in the energy sector. Other relevant GPs will be engaged in different activities.
• K-Partners:
  Korea Electric Power Corporation (KEPCO): energy IT solutions, PV manufacturers, energy efficiency ESCOs
• Korea Energy Agency (KEA), Korea International Cooperation Agency (KOICA): collaboration on knowledge transfer on RR and EE areas, and future collaboration with all parties
• Other donors: financial collaboration to be requested from other donors such as Energy Sector Management Assistance Program (ESMAP), SFLAC, PMR, KfW, IDB.