Affordable, reliable electricity is critical to boosting prosperity and eradicating poverty throughout the Europe and Central Asia (ECA) region. Countries in this region are facing looming energy shortages - both in electricity and primary fuels (such as natural gas). Furthermore, the ECA region is one of the most energy inefficient regions in the world – with 5 percent of global GDP and 10 percent of global energy consumption. Demand in the region continues to rise and it is expected that energy demand around ECA will rise by as much as 50% over 2005 levels by 2030. These issues are compounded by the deterioration in energy infrastructure around the region and an absence of maintenance initiatives – leading to low capacity, reliability, and efficiency. Tariff reforms, energy efficiency, and a gradual transition to a cleaner energy mix are critical in mitigating these issues in the region.
The World Bank Group is firmly committed to working with countries in the ECA region to help mitigate the economic, social, and environmental issues being created by the energy sectors in these countries. The energy lending portfolio for ECA has grown by more than four times in recent years – expanding from $518 million in 2006 to $2.3 billion in 2012.