Blogs tagged as energy access

  • IPCC special report on 1.5°C


    October 8th, 2018

    In 2015 the Paris Agreement, the global compact signed by the governments of the planet to tackle climate change, was agreed. In the negotiated process to reach this agreement some governments still had doubts about the degree of warming that was acceptable and necessary to maintain global development. These governments led by Saudi Arabia, asked the Intergovernmental Panel on Climate Change to undertake a special report on the impacts of global warming of 1.5 °C above pre-industrial levels. Recognising as we do that some increased emissions in developing countries may be necessary in efforts to eradicate poverty. This report and the summary for policy makers, based on review of more than 6,000 independent research papers was released on Monday 8th October at 3am UK time.

    The report identifies that human activities have caused approximately 1.0°C of global warming above pre-industrial levels and if action isn’t forthcoming global warming is likely to reach 1.5°C by 2030. This warming is set to persist for generations even if zero emissions pathways were implemented immediately. The report indicates that current global challenges related to heatwaves in inhabited regions (high confidence), increased rainfall and flooding in several regions (medium confidence), and expanding drought (medium confidence). So the heatwaves, forest fires, tropical storms, flood and droughts aren’t going to go away any time soon.

     

    Limiting global warming to 1.5°C compared to 2°C is projected to lower the impacts on terrestrial, freshwater, and coastal ecosystems and the biodiversity they contain (high confidence). Climate-related risks to health, livelihoods, food security, water supply, human security, and economic growth are projected to increase with global warming of 1.5°C and increase further with 2°C. So we need to act and we need to act now.

    One existing opportunity is to link action to the delivery of the Sustainable Development Goals (SDGs). It has long been realised that tackling climate change is essential to deliver on the SDG’s. The graphic below illustrates the linkages between mitigation options and the SDGs, clearly demonstrating that our future is incompatible with continued use of fossil fuels.

    Mitigation options deployed in each sector can be associated with potential positive effects (synergies) or negative effects (trade-offs) with the SDGs. The degree to which this potential is realised will depend on the selected mitigation options, the supporting policy and local circumstances and context. Particularly in the energy sector, the potential for synergies is much greater than for trade-offs, a reminder that we need to commit to zero emissions and need to act on this now.

    Based on the stark evidence nations must now respond by signalling their intention to increase their national emission reduction pledges under the Paris Agreement. They have the perfect opportunity as this December the world gathers for the annual UN climate talks. We need to lobby our governments to take this report and its message seriously. They must commit to strengthen policies and actions that cut global greenhouse gas emissions, invest in measures to limit future climate risks, and do more to help communities cope with the climate impacts that are now unavoidable.

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  • Innovation in last mile distribution


    May 22nd, 2018

    The Global Distributors Collective (GDC) facilitated an ecosystem event at the Skoll World Forum on 12 April dedicated to ‘innovations in last mile distribution’.

    Event hosts Practical Action, BoP Innovation Center and Miller Center for Social Entrepreneurship ran a panel with practitioners from the Shell Foundation, EYElliance and Danone Communities. The audience, which included a wide array of participants from the private sector, social enterprises, multinational institutions and NGOs, had a lively Q&A session followed by a world café.

    The event highlighted a range of key challenges and innovations in the last mile distribution (LMD) sector:

    The panel – Liz Smith (EYElliance), Meera Shah (Shell Foundation) and Valerie Mazon (Danone Communities), moderated by Emma Colenbrander (Practical Action)

    1. Working capital for inventory and consumer financing

    LMDs struggle to access working capital for inventory because they are not selling at sufficient volumes to attract the interest of mainstream debt providers, and are seen as too high-risk to lend to. They manage this challenge using different approaches, such as providing sales agents with stock on consignment, but innovation is desperately needed to facilitate better access to capital.

    The burden of providing consumer finance tends to fall to LMDs, but there is potential for manufacturers and intermediaries to play this role. There is significant opportunity to tap into MFIs, especially in countries like India where the pay-as-you-go (PAYG) sector is not as strong, but questions remain about how to de-risk this investment for MFIs. One innovation in consumer financing that Shell Foundation is exploring is digital lay-away schemes for customers to save towards down payments on products.

    2. Demand creation and behaviour change

    For complex products like eyeglasses and improved cookstoves, consumer education is needed to raise awareness and ensure adoption, but this is often expensive and inefficient. Broad campaigns can be a more cost-effective way of building demand and educating consumers than targeting individuals. Campaigns can be done nationally (such as those planned by EYElliance alongside governments) or on a local level (such as those done by Danone Communities using community ambassadors). Consumer campaigns must integrate LMDs on the ground in order to be effective and to ensure supply can adequately meet demand.

    Meera describes how LMDs are typically underinvested in compared with product companies

    3. Salesforce training

    All participants agreed that salesforce training continues to be an enormous challenge in the sector, especially given high churn rates in sales teams and the need to adapt training to different markets. Classroom training is of limited value, so ongoing mentoring and support (and a small sales manager/sales agent ratio) is essential. Innovative training providers are emerging in the sector to support LMDs and some companies (eg. M-KOPA) have set up their own training universities. However, these services are either exclusive or very expensive, and tend to focus more on technical skills rather than sales and marketing. There is huge demand for more innovation in this space.

    4. Opportunities to leverage economies of scale

    EYElliance represents an excellent example of how collective approaches can work in distribution. EYElliance is a coalition of multi-sector actors working at system level to create change in the vision sector. They have had success in distribution of eyeglasses by tapping into the expertise of many members and learning from distribution methods in other product categories such as antimalarials, solar lighting and Fast Moving Consumer Goods (FMCGs).

    The following key opportunities were identified to leverage the power of the collective across the LMD sector:

    • sharing best practices and lessons learned through online platforms, in-person networking and exchange visits between LMDs
    • improving access to information, including by building a directory of certified peer-reviewed products
    • developing standardised metrics and measurement tools for M&E
    • bulk buying products to streamline procurement processes

    5. Potential of emerging technologies to transform the sector

    Liz Smith describes EYElliance’s collaborative model to achieve systems-wide impact in eyeglass distribution

    Technologies that help gather data for operational intelligence are increasingly being utilised, for example software that can digitally track consumer behaviour. The next disruptive technologies are 3D printing which will transform manufacturing, and blockchain which will enable LMDs to track inventory through the supply chain and more effectively assess impact.

    6. Product specialisation vs diversification

    LMDs that use sales agent networks to sell complex consumer products generally need to specialise. Specialisation tends to be the most cost-effective approach because different skills and knowledge are required for different product categories, and also because LMDs have so many other functions to manage – logistics, procurement, finance, etc – that end sales need to be simplified to the greatest extent possible. However, LMDs can still achieve diversification across their portfolio by specialising at the sales agent level (ie, each sales agent only sells one product category) or by focusing on promoting different products during different time periods, rather than offering a basket of goods all year round. It has proven difficult to combine distribution channels for consumer durables like solar lights with FMCG products, although retail channels have more success than sales agent networks.

    The hosts closed the session by showing great willingness to work on the discussion points raised through the Global Distribution Collective.

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  • Dragon’s Den with a twist: unlocking finance for energy access


    April 30th, 2018

    ‘Dragon’s Den’ has been a very popular TV format where entrepreneurs get to pitch their ideas to potential investors, with versions of the show produced in nearly 30 countries.

    New investments are also needed in energy access. There remains a very large financing gap between the amounts estimated to be needed per year to reach the 2030 SDG goal of universal access to electricity and clean cooking, and finance currently flowing. Various reports documented this over the last year including the suite of ‘Energizing Finance’ reports from SEforAll, Practical Action’s Poor People’s Energy Outlook, and the IEA’s Energy Access Outlook.

    What’s missing in the usual Dragon’s Den format is the voice of the consumer, who could ask questions about whether the product on offer will meet their needs.

    Practical Action at the SEforAll Forum

    SEforAll Forum 2018 logoAt this year’s SEforAll Forum, Practical Action together with CPI and Hivos are hosting a Partner Working Session on Energizing Finance: Thursday 3rd May, 14:30-16:00, Rossio room.

    As part of this we’ll be inviting two organisations with great financing products to pitch their ideas. The twist is, they will be quizzed not only by potential investors, but also by representatives of their customer base: the off-grid businesses who are so starved of money currently. The finance products we’ll be featuring are:

    • The Renewable Energy Scale-Up Facility (RESF), which works by delivering early-stage finance to businesses in increments as they achieve key development milestones, in exchange for the option to buy equity at financial close, at better-than-market rate terms.
    • Green Aggregation Tech Enterprise (GATE), which helps mini-grid developers by acting as an aggregator and providing other business development services to mini-grids. They commit to providing mini-grids with a standardized payment system, and offer a standardized documentation, payment and energy accounting system.

    These are just two of a range of 26 financing solutions brought together under the Climate Finance Lab which, since its launch in 2014, has mobilised more than $1 billion in sustainable investment.

    This opportunity for potential beneficiaries of RESF or GATE to quiz them is part of the bottom-up revolution in energy access that is so sorely needed if we are to stand any chance of meeting our SDG goals.

    What do we already know about finance for energy access?

    Practical Action worked with SEforAll last year on the Taking the Pulse’ report as part of the Energizing Finance series. Focusing on five high-impact countries, we interviewed a wide range of small and medium energy access enterprises and other stakeholders to understand the challenges they face in accessing finance and growing their businesses to better serve poor and remote communities. We heard time and again about the barriers of lenders’ conditions to qualify for a loan in terms of collateral, track record or data. We heard about the problems of borrowing in foreign currency rather than local currencies which make it all-but-impossible to offer stable pricing to customers, or where restrictions on foreign exchange can make it hard to guarantee year-round supplies. We heard about the urgent need for working capital and for the easing of restrictive government regulations particularly for mini-grids.

    The Taking the Pulse report highlighted the depth of the challenge in the clean cooking sector where current investments were so low they amounted to less than $1 per capita per year. In this cash-starved environment, companies are looking for ways to help customers borrow for clean cooking solutions, as well as better co-ordination and policy support for market-based solutions. The sector needs to recognise the opportunities in the fuels markets which may be significantly greater than in the stove itself.

    Poor People's Energy Outlook 2017 cover imageOur 2017 edition of the Poor People’s Energy Outlook similarly pointed to the gap between current levels of financing, and the amounts needed to meet the energy service needs of off-grid communities. We emphasised the need for energy access financing across the spectrum: meeting needs for electricity and clean cooking, and for household, productive uses and community services (water pumping, street lighting, schools, health care, government services etc). We highlighted the extent to which an affordability gap still remains, requiring the right sorts of public finance targeted to close this gap.

    We had a particular focus on the extent to which women are disadvantaged in terms of access to finance both as entrepreneurs and consumers. Levels of trust in their businesses are often lower, and they may be more affected by the requirements for collateral and track-record. And as consumers they may find it harder to access finance for purchasing products in their own right.

    Graphic showing barriers and solutions to women's participation in energy access markets

    Hivos and Practical Action alike will be bringing a clear focus to the Partner Working Session on our core questions of:

    • How will new finance solutions help bring energy access to those places currently not well served – remote and poor communities, where levels of affordability are low?
    • How will new finance solutions recognise and seek to address gender inequalities which disadvantage women and hold back progress on energy access?

    The closing panel for the session includes strong civil society representation from Surabhi Rajagopal, co-ordinator of the ACCESS Coalition, who will bring these messages and challenges to the discussion.

    We are looking forward to a fascinating and challenging event, and hope to see many of you there. The forum will also be very well covered on social media, so if you can’t make it in person, stay tuned all week for updates. #SEforALLForum

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  • End energy poverty


    April 5th, 2018

    Energy is one of the key indicators for development. Like other essential basic needs, a certain amount of energy is required for our survival. Depending on the context, livelihood patterns and way of living, energy needs are different. For example, nowadays, people in Bangladesh across all socioeconomic categories are using cellphones due to very high rates of penetration. So the energy requirement for charging cellphones has become a basic need for users.

    Bangladesh has achieved tremendous success in several sectors and has touched the base of being a middle income country. The Government has committed to supply electricity for all by 2021, and has increased production remarkably. But still 38% of people are outside the coverage of the national grid, of these 20% have no access to electricity.

    Solar power bangladeshAn electricity supply doesn’t necessarily mean a supply of quality electricity. If we can’t ensure 24/7 supply, we cannot make productive use of energy in hard to reach areas. A flourishing rural economy, promotion of entrepreneurship and local-level business, and the establishment of better market linkages, requires an uninterrupted electricity supply. For example, if someone wants to build a hatchery, milk chilling centre or even cold storage in a remote area, all of which could contribute to the growing economy for the country, a continuous supply is a must. . However, investment in the power sector in Bangladesh is predominantly made adopting a top-down approach. This traditional approach of planning requires to be revisited.

    Total Energy Access

    Practical Action is globally renowned for its energy-related work. Its global call for energy is titled as Total Energy Access – TEA. Practical Action wants to end Energy Poverty.

    One of its global flagship publication series is: Poor People’s Energy Outlook (PPEO). The recent two publications of PPEO series refer to three countries, of which Bangladesh is one. These publications highlight the perspectives poor people on energy.PPEO Launch Bangladesh

    The previous publication in this series, PPEO 2016, focused on the energy needs of poor people living in off-grid areas of Bangladesh. These include household requirements, requirements for community services like schools, hospitals, etc., and also the need for entrepreneurship development. Apart from energy requirements, this publication figured out the priority of energy needs, affordability and willingness to pay.

    The latest issue, PPEO (2017), reflects on the investment requirements for poor people to access energy, followed by the needs identified in the previous one. The total energy requirements have been derived for each of the segments such as solar homes systems, grid expansion and entrepreneurship. Together with the investment patterns, it identifies the challenges associated with the investment, and suggested essential policy recommendations.

    Women’s energy needs

    Reflecting on our typical planning mechanisms, how much do we really think about the need of the poor people? Do we think of women in particular?

    Nowadays, women are taking up the role of farming and many of them are heading their families. Many women are emerging as entrepreneurs. Have we really thought about their energy needs? If we don’t offer them access to finance, build their capacity for financial management and provide hand holding support, they will simply lag behind. While investing on access to energy, we have to think the special needs of women, and how to ensure energy equity.

    The outcomes of the PPEO study should give policy makers the food for thought and inspire action to adopt a bottom-up approach for energy solutions for energy-poor people.

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  • Global SDG7 Conference: are we really doing things differently in energy access?


    March 15th, 2018

    More than two years have now passed since the 2030 Agenda was designed and the new Sustainable Development Goals (SDGs) established – including SDG7 which ‘ensures access to affordable, reliable, sustainable and modern energy for all’. The UN’s tracking of progress on SDG7 over the last two years has shown mixed results. (more…)

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  • Energy Supporter Objects – The Variety of Energy Technologies and Uses in Refugee Settings


    December 5th, 2017

    A blog authored by Sarah Rosenberg-Jansen and Anna Okello. December 2017.

    A ‘missing link’ in humanitarian energy access

    Energy is a critical need for refugees and displaced people: millions of displaced people do not have access to energy, and humanitarian agencies and refugees themselves struggle to work with complex energy technology systems and products – as we discuss in the Moving Energy Initiative Report. Recognising this, Practical Action has developed an extensive portfolio of work on energy in humanitarian settings. This includes current research into how refugees practice and perceive energy, undertaken by working with communities to understand how refugees in Kenya engage with energy technologies and the objects that surround them, funded by the University of Edinburgh among others. By ‘objects’ or ‘energy supporter objects’, we mean items and technologies which are integral for, or attached to, sources of energy to make energy-use possible. These technologies can be seen as missing links between the energy supply (e.g. a solar panel) and the service (e.g. a fully charged mobile phone) – the energy supporter object is the phone charger, because without it the end energy use (charging a phone) is impossible. Other examples would include, matches, wires, cooking pots, vehicles for transport, and appliances such as clocks and headphones.

    Our research shows the extent to which communities maximise their total energy access needs by using a variety of energy objects and technologies. This goes far beyond having solar lanterns and improved cook-stoves, as, for people to use these products effectively, they require a great many additional technologies and objects.

    A comprehensive approach to energy poverty in humanitarian settings

    For humanitarian decision-makers to be fully aware of how communities’ use and value energy, we argue that it is vital that the total energy life of refugees is taken into consideration. Energy supporter objects form a core part of the realities of refugee lives, and systems of support and humanitarian response need to consider these physical things as well as basic energy access technologies to effectively work with communities. For example, a bicycle may not be considered an energy technology, but many people are reliant on this form of transport to enable them to move batteries to be charged, to transport firewood, and to deliver diesel fuel.

    Energy supporter objects in practice: Kakuma Refugee Camp

    One area Practical Action works in is Kakuma Refugee Camp, which is in the Turkana District of the north-west of Kenya. In Kakuma there are many diverse communities; with people from Somalia, Ethiopia, South Sudan, and the Democratic Republic of Congo. The camp population is currently estimated to be over 180,000 and has been in existence since 1992. In the past few years, the camp has expanded quickly with new arrivals coming from South Sudan or being relocated from Dadaab camp, which may close.

    In Kakuma, there are a dynamic set of markets, energy products and services available within the communities. During our research several types of ‘energy supporter objects’ emerged as being key to the community, including matches, wires, and phone chargers. The table below provides a summary of some of these objects and the type of ‘traditional energy objects’ they are often connected with or to in the Kenyan context.

    Communities solving their own problems

    While we don’t suggest that humanitarian agencies should provide energy supporter objects as part of their responses or aid programmes, we want to draw attention to the ways local communities are already solving these problems themselves. Many of the refugee and host community businesses that exist within or close to refugee camps are already centred on energy supporter objects and are supplying this demand gap themselves. For example, the picture below shows a refugee business owner who sells solar panels. But in his shop, there are also batteries, matches, torches, extension cables, light bulbs, chargers, speakers, sound systems and radios. By supporting and facilitating these markets, humanitarian responders have an ideal opportunity to also support income generating opportunities and the self-sufficiency of refugees – which can lead to increased human development and wellbeing of communities.

    Refugees’ energy access priorities in reality

    In many cases, our research found that the energy supporter objects were more central to business owners and refugee households than the source of energy itself. The picture below shows a music store in Kakuma camp, the owner of whom has multiple energy appliances: a computer, screens, keyboard, fans, a television and sound system. The source of energy for this business was actually a mini-grid connection, however, when discussing energy, the business owner focused almost exclusively on the appliances and uses of energy. This finding is in-keeping with Practical Action’s Poor People’s Energy Outlook report series, which has long maintained that it is not the energy supply but energy services that matter most to marginalised people – people care about what they can do with the energy, not where it comes from.

    We suggest that NGOs and practitioners can focus on the way that people use energy and the practical realities of living as a refugee, to more successfully deliver support and energy access technologies. Understanding energy supporter objects is one angle that could be used to achieve this. More information on the energy lives of refugees and displaced people is available from the Moving Energy Initiative and Practical Action’s work on humanitarian energy.

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  • Universal energy access: what’s gender got to do with it?


    April 20th, 2017
    Written in partnership with Mariama Kamara, Founder and Director, Smiling Through Light

    The energy sector is traditionally male-dominated with men’s access to better education, skills training, and finance enabling them to develop businesses and access markets that women have often been excluded from as a result of gendered social norms and women’s unpaid care work. In the energy world, the role of women has often been limited to that of consumers; particularly in relation to the household sphere and cooking practices. The benefits of clean cooking fuels and technologies on women and girls is championed on global platforms; and women are being increasingly recognised as important to energy access planning processes. What benefits arise, though, when we embrace and empower women as agents of change who are actively striving for, and driving us towards, Sustainable Development Goal 7 (SDG7)?

    CSW61: Women as Agents of Change

    Last month, at the UN’s 61st session of the Commission on the Status of Women (CSW61), Practical Action hosted a parallel session exploring just that: Women as Agents of Change in Sustainable Energy Access Value Chains. The session, which heard from  Practical Action’s Sudan and East Africa offices, Smiling through Light, Energy Research Institute Sudan, and Solar Sister, demonstrated that investing in women’s potential as entrepreneurs, technicians, policy-makers and thought-leaders is vital for achieving gender-transformative outcomes and more effective energy access approaches.

    Image of the panellists and organising team of Practical Action's event at the 61st Commission on the Status of Women, on women as change agents in sustainable energy access value chains.

    CSW panel members from left to right: Mariama Kamara (Smiling Through Light), Dr Sawsan Sanhory (Energy Research Institute Sudan), Neha Misra (Solar Sister), Muna Eltahir (Practical Action Sudan), Charlotte Taylor (Practical Action), Samah Omer (Practical Action Sudan), Lydia Muchiri (Practical Action East Africa).

    Gender Equality + Sustainable Energy Access = Opportunity for All

    Across the panellists’ different experiences, from the grassroots initiative of Smiling Through Light to the global campaign of Solar Sister, a clear message could be heard: at the intersection of gender equality and sustainable energy access lies vast potential – for women’s economic empowerment, certainly, and also for sustainable development and improved wellbeing for their communities and beyond.

    A briquettes entrepreneur from the Women in Energy Enterprises in Kenya (WEEK) project

    A briquettes entrepreneur from the Women in Energy Enterprises in Kenya (WEEK) project

    The keynote speech, delivered by Lydia Muchiri, Senior Gender and Energy Advisor for Practical Action East Africa, explored the Women in Energy Enterprises in Kenya project (WEEK). Delivered in partnership with Energia, this project empowers women as providers of energy across three value chains – improved cookstoves, solar products, and biomass briquettes – in the roles of producers, suppliers and ‘brand activators’. WEEK project activities support women to build their social capital, develop fundamental business skills, and improve their confidence as entrepreneurs; these women now drive behaviour change, convincing others to adopt clean energy options. Five WEEK project entrepreneurs appeared at the recent SEforAll Forum to share their experiences, demonstrating a growing appetite to hear rural women’s grassroots knowledge on global stages.

    Smiling Through Light: be the change that you want to see

    Smiling Through Light’s Founder and Director Mariama Kamara highlighted the centrality of women’s knowledge, empowerment and collective action to building environmentally sustainable pathways to sustainable energy access; emphasising in particular the diverse roles women play across the energy value chain from production and transportation, to distribution and end use. At the age of nine Mariama left Sierra Leone during the civil war; after later learning that energy use in Sierra Leone was still mostly limited to kerosene for lighting, with no access to clean energy services, she started Smiling Through Light in 2014. By doing so, Mariama became the change she wanted to see. Smiling Through Light now advocates for women, as primary consumers and users of clean energy products, to be integrated into the process of designing appropriate solutions and engaged throughout the value chain to improve their livelihoods.

    The path to SDG7

    There remain many clear opportunities to advance women’s positions across the energy access value chain, including:

    Policy – Advocate for policy that goes beyond perceiving women as victims of energy poverty or mere consumers, but as potential drivers of the sector. Embrace and lobby for the critical role of smaller, distributed energy solutions in addressing rural energy poverty, and women’s unique contribution to this sector.

    Finance – Recognise that women’s access to finance is often constrained by social, political and economic constraints; i.e. collateral requirements based on land or asset ownership. Dedicate specific financing, credit facilities, grants and concessional loans to women’s sustainable energy activities.

    Skills – Address the significant skills and local workforce development gaps in energy access in a way that empowers more skilled women to participate across the value chain, and educates others on the value of their contributions.

    Evidence – Continue to build evidence to help inform policy on why women in clean energy value chains are uniquely positioned to make a lasting impact; bringing local women entrepreneurs and decision-makers’ voices and experiences to the fore.

    An entrepreneur from the Women in Energy Enterprises in Kenya (WEEK) project makes money and heat from waste, selling to customers at market

    An entrepreneur from the WEEK project makes money and heat from waste, selling to customers at market

    As energy access advocates and champions of gender equality we must continue to find opportunities, like at CSW61, to demonstrate the positive impacts that women’s economic empowerment in energy access initiatives has for themselves and their families, as well as their extended communities and international development practice more broadly. We need to continue challenging damaging gendered social norms which disempower women as change-makers; and simultaneously strengthen policy coordination, knowledge sharing, financial inclusion, programmatic partnerships and research to advance women’s participation in sustainable energy development for all.

     

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  • Money Matters: what role for finance in achieving universal energy access?

    This week saw key players from the energy world gather in Brooklyn, New York, at the SEforAll Forum to talk all things SDG7: that is, access to affordable, reliable, sustainable and modern energy for all by 2030. Overarching the vibrant panel discussions, a clear call has emerged: greater and more dynamic action is needed, and fast, if we are to achieve universal energy access on this tight timeline.

    Energy access is vital to achieving nearly every sustainable development goal and progress on energy access acts as a barometer for development progress more broadly. Monday’s launch of the latest Global Tracking Framework, which looks at the state-of-play on energy efficiency, access and renewable energy, gives us food for thought…

    The Global Tracking Framework update

    The report, led by the World Bank Group and the International Energy Agency, confirms that global electricity poverty has declined only minimally from 1.1 billion (GTF 2015) to 1.06 billion (GTF 2017); while the number of people using traditional, solid fuels to cook has actually risen slightly to 3.04 billion, “indicating that efforts are lagging population growth”. For progress to move at the speed and scale required, the report asserts that we need to at least double our investment in modern renewables. But, is increased investment alone the answer?

    Financing national energy access: a bottom up approach

    Man and woman stand outside the Kalawa Financial Services Association in Kenya

    The PPEO 2017 explores this question, using case study evidence gathered from 12 energy-poor communities across Bangladesh, Kenya and Togo. This brand new research, showcased by Practical Action for the first time at the SEforAll Forum this week, demonstrates that while the volume of finance does indeed need to be scaled up, we must delve deeper into understanding the types of finance and directions of financial flows that are key to planning for universal energy access at the national and global levels. Our analysis is unique in that it builds on poor people’s own preferences, and takes a holistic view across households, productive uses and community services.

    Decentralised energy as the way forward

    Villagers in Kitonyoni, Kenya, gather to discuss decentralised energy technologies. Credit: Sustainable Energy Research Group and Energy for Development.

    This is particularly pertinent to the vast majority of those living in energy poverty today; poor rural populations who would best be served by the sorts of distributed energy (mini-grids and stand-alone systems) that receive a disproportionately small amount of the energy access financing pot – in comparison to the grid and in relation to their potential service provision. While World Bank funded power sector projects have an average timeline of nine years from conception to service delivery, research by Power for All demonstrates the vast benefits of decentralised systems; with mini-grids taking on average just four months to get up and running, while for solar-home-systems this is less than one month. According to our own modelling in the PPEO 2017, the distributed energy sector should account for a significant portion of future electricity access financing nationally; up to 80% in Bangladesh and 100% in Togo. At present just 25% of planned investments in Bangladesh, and 5% in Togo, will go towards distributed energy.

     

    The PPEO 2017 also finds that:

    • Increasing national energy access financing for clean cooking to similar levels as for electricity will be key to empower energy-poor communities to use the very clean fuels (gas and electricity) they show a keen interest in.
    • Particularly in pre-commercial markets such as Togo, there is a real opportunity for the public sector to improve the policy and regulatory environment to better embrace distributed solutions, and encourage financial institutions to support consumer and enterprise loans more flexibly, so as to enable rapid market activation.
    • Concessional finance will play a vital role; and consideration of how best to deploy this will be important to help companies move up the ladder to scale and profitability, in order to bring energy access to more people.
    • To make further progress in already mature markets such as Kenya and Bangladesh, addressing barriers to accessing finance that are related to specific policies could help reduce the cost of distributed electricity and clean cooking solutions (including tax exemptions and streamlining of licensing requirements).
    • Inclusive energy access financing can actively promote gender equality. To enable women to participate meaningfully as consumers and entrepreneurs gendered norms around accessing small loans should be addressed, as should the impact of women’s caring responsibilities on their mobility and ability to participate in various markets and training.

    Beyond Brooklyn: what next for SDG7?

    Solar-powered irrigation provides smallholder farmers the water they need to cultivate crops in Gwanda, Zimbabwe

    The PPEO 2017 and Global Tracking Framework agree that utilising the right tools and approaches takes us a step closer to bringing energy access to people more quickly, sustainably and affordably. By listening to the voices and preferences of energy poor communities, as the PPEO series has done, and by framing national planning processes and global financing mechanisms around the sorts of bottom-up approaches which put these priorities front and centre, SDG7 can be achieved. It has been immensely encouraging to see the voices of the rural energy-poor being elevated across the SEforAll forum this week; which has been undeniably multi-stakeholder, with actors from national governments and global institutions, civil society and the private sector rubbing shoulders and engaging in lively debate on the best way forward. One thing is for sure – to achieve the goal we are all aiming for, the elusive SDG7, this cross-sectoral dialogue must be continued well beyond Brooklyn, because no actor working alone will reach the light at the end of the tunnel.

     

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  • Will COP21 deliver a Paris Protocol?


    November 25th, 2015

    Have the global negotiations for a new climate agreement switched from a marathon to an egg and spoon race?

    We are now in the final leg of the marathon negotiations for a new climate agreement. At the last meeting in Bonn, the negotiators were expected to intensify their pace, but by the end of the meeting it was clear no one had sped up, if anything the pace had slowed. We are now entering the final sprint to the line. In 5 days the 21st Conference of Parties (COP) of the UN Framework Convention on Climate Change (UNFCCC) will take place in Paris. Without a sprint finish it is unlikely that an effective Paris Protocol will be signed.

    Great Climate RaceThe Great Climate Race is just one example of what communities around the world are doing to tackle climate change. A fund raising run/walk to raise money for community solar power, because climate change is a race against time!

    So what are the core stumbling blocks in the way of delivering a Paris Protocol?

    The first barrier is a long standing one around whether developed and developing nations should be treated differently. The issue known as “differentiation” remains a significant hurdle. To be effective the new agreement must build on the original convention text around common but differentiated responsibilities. But it must update the text to match today’s reality and be dynamic to evolve as the world changes. Historical emissions must not be ignored, but the changing dynamics of global emissions means that the text must be flexible enough to respond to changing circumstances.

    The second barrier is around finance. For poor and developing nations allocating sufficient resources will be vital to deliver the agreement. At the Copenhagen COP in 2009 developed countries committed to mobilise jointly USD 100 billion dollars a year by 2020. A lack of clarity around these contributions, double counting of existing development assistance and the role of the private sector all continue to hinder progress in this respect.

    Egg-and-spoon raceThirdly, Loss and Damage continues to divide parties. Some countries hope to see it embedded within the heart of the agreement, while others suggested it should be removed. Lack of action to reduce emissions will lead to a greater need for adaptation. Lack of finance for adaptation will lead to accelerating Loss and Damage. The logic is clear, but still Loss and Damage fails to receive the recognition and importance it deserves.

    The Paris COP is supposed to light the way for governments to finally deliver an effective global response to the threat of climate change. However, to avoid another failed UN sponsored global conference it will be vital for politicians to put in the additional legwork to make the Paris Protocol a reality.

    We don’t just want an agreement, we need a robust agreement that delivers. Human rights, gender equality and the issue of a just transition must be central to the agreement. A human rights centred agreement offers a holistic approach that makes the connections between the economic, social, cultural, ecological and political dimensions, and links what we are doing to tackle climate change with the Sustainable Development Goals and the Sendai Framework for Action on Disaster Risk Reduction.  Is this too much for our children to ask for?

    Further information

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  • European Development Days: Action for an ambitious energy SDG

    We’ve got just three months until world leaders agree a new set of Sustainable Development Goals (SDGs) for the next 15 years …goals that will affect the lives of millions of people.

    There are proposed goals to:

    • eradicate extreme poverty
    • eliminate avoidable child death and hunger
    • provide good quality universal secondary education
    • deliver universal access to clean water and sanitation
    • ensure access to affordable energy for all.

    A few months later, UNFCCC negotiators will meet in Paris to finalise a new climate agreement.

    We have a real chance to take serious action against some of the world’s biggest challenges…one of those being access to energy, which underpins efforts to achieve many of the development goals.

    We need an ambitious energy SDG

    In the run up to the deadline, Practical Action is calling for SDG and UNFCCC negotiators to design goals and agreements on energy that support a ‘no person left behind’ agenda and deliver not only on energy for the poor, but energy for the planet. Please join our EU call for action.

    More than one billion people don’t have access to electricity and nearly half the world’s population cook on open fires using solid fuels like wood and charcoal. The toxic smoke from these fires kills more than four million people a year – more than malaria, HIV/Aids and tuberculosis combined.

    smoke_MG

    Only a robust, clearly defined energy goal can provide the clarity and targets needed to measure progress and hold countries to account for providing not just any access, but meaningful levels of energy that can be used to create jobs, power medical facilities, and provide cleaner alternatives to the dangerously dirty cooking fuels used today by billions.

    If the level of ambition for an energy goal is not increased, universal access to energy will not become a reality, however catastrophic climate change will. The current phrasing inadequately calls for the world to “increase substantially the share of renewable energy.” This does not offer the clarity or sense of urgency needed to spur appropriate action on the greatest environmental challenge humanity has ever faced. Only a goal of tripling the share of renewable energy can deliver on the internationally agreed target of limiting global temperature increases to two degrees.

    Practical Action at European Development Days 2015 (#EDD15)

    That’s why a team from Practical Action are at the European Development Days in Brussels this week. We’re running a session, in partnership with Carbon Clear and UNHCR, highlighting innovative and sustainable energy access solutions that could save lives and our environment. It will specifically examine an innovative project in Darfur, Sudan, which has used carbon credits and microfinance to help 15,000 families replace traditional fires with LPG stoves. The project has not only eliminated deadly smoke from homes and countless hours searching for firewood, but also has reduced deforestation and created jobs.

    The session, ‘Cooking on gas: can fossil fuels save lives and reduce deforestation?’ is at 09:00-10:15 on Thursday 4 June in Room S4.

    We’re also hosting a stand (W3) championing this very topic: showcasing our energy work and advocating the importance of universal access to energy, which is not a standalone issue but underpins efforts to achieve many other development goals.

    “Let’s grasp this historic opportunity”

    “It’s the most important year in international development in a whole generation,” said Melinda Gates at a European Development Days session yesterday. “To make sure of success we need to get citizens around the world engaged in this process. We need to excite people, get them to share information, talk about the goals and stand up and say this is important. Let’s grasp this historic opportunity to make a world where everyone has a chance to live a healthy and productive life.”

    Get involved and influence

    The SDGs have the potential to make a real difference but they are only going to be as good as we make them. That’s why it’s important to get involved and influence this crucial framework for development.

    I’m extremely excited about the conversations that are taking place on this important issue. Join the conversation and follow our activities at @practicalaction and #EDD15.

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