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Africa Decentralized Energy
Access Strategy Discussion
Mary WillcoxPrincipal Consultant, Energy
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Introduction
Achieving the SE4All goal - Universal Energy Access
by 2030 - in Africa is a major challenge
Decentralized solutions offer one of the key strands in
meeting this challenge
This strategy paper discusses:
the range of decentralized solutions;
their characteristics; and
actions needed for their successful deployment
It complements the Africa SE4All Guidelines and the
global strategy for Bottom-Up Energy Solutions
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Strategy Objectives
Highlight the need for decentralized solutions
Raise awareness and understanding of
decentralized energy options
Explore the conditions and inputs needed for theirsuccessful deployment
Propose a process for incorporating decentralized
solutions in national Action Plans
Discuss how a shift from small projects to scale-ableprogrammes can be achieved
Identify areas for support from the SE4All Hub
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Decentralized Energy Need and Benefits
Universal access to clean energy services is an essential
enabler of inclusive development; poverty reduction;
enterprise development; achievement of the MDGs and
reduction of the gap between rich and poor.
Access to modern energy can transform lives:
Improved cookstoves reduce indoor pollution, with health benefitsespecially to women and children
More efficient stoves reduce the burden of gathering fuel and
benefit the environment Solar lanterns/chargers enable children to study at home and
facilitate communications and improved market access
Solar powered refrigerators allow vaccines to be stored safely
A village water mill can increase incomes and reduce drudgery
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Decentralized Energy Need and Benefits
Offer an alternative for those beyond the economic reach
of grid extension
Can target specific disadvantaged groups to support
development and poverty reduction
Can be deployed rapidly through market chains which
become self-sustaining
May support local supply chains and job creation, with
greater local value retention
Are often renewable-based, providing low-carbon
development and reduced vulnerability to fossil-fuel prices
Can be delivered at scale through coordinated
programmes
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Decentralized Energy Need and Benefits
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Incorporation in ActionPlans
Decentralized and Centralized Energy Access
Solutions have different success factors
=>
Need to incorporate Decentralized Options and their
requirements in to Action Plans alongside
Centralized Solutions
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Incorporation in ActionPlans - Process
Establish
baseline for
Energy Access
extent and
levels
Review
Decentralized
Energy Access
Ecosystem
Participatory
Mapping of
Decentralized
Energy Access
Markets
Review decentralized (and
centralized) solutions
(economics, financial/other
requirements, scale
potential)
Identify priority
decentralized
solutions
Identify enabling
actions
Identify potential
Scale Programmes
Formulate Action
Plans & set Targets
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Incorporation in ActionPlans - Process
Establish
baseline for
Energy Access
extent and
levels
Review
Decentralized
Energy Access
Ecosystem
Participatory
Mapping of
Decentralized
Energy Access
Markets
Review decentralized (and
centralized) solutions
(economics, financial/other
requirements, scale
potential)
Identify priority
decentralized
solutions
Identify enabling
actions
Identify potential
Scale Programmes
Formulate Action
Plans & set Targets
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Measuring Energy Access
SE4All Global Tracking Framework
Tier 0 1 2 3 4 5
Electricity services None
Electric lighting,
radio, mobile
phone charging
Tier 1 + multi-
bulb lighting,
air circulation,
TV
Tier 2 + water
heater, rice
cooker
Tier 3 +
refrigerator,
mechanical
loads
Tier 4 + electric
cooking, space
heating and
cooling
Energy supply
attributes
Mini-grid Mini-grid Mini-grid
Grid Grid Grid
Likely electricitysupply technology
(indicative)
None Solar lanternStand-alone
home system
Continuous spectrum of improving energy supply attributes including:
quantity (watts), duration (hrs), evening supply (hrs), affordability,
legality, quality (voltage)
Indicative multi-tier framework for household electricity access
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Measuring Energy Access
SE4All Global Tracking Framework
Indicative multi-tier framework for clean cooking
AttributesTier 0 1 2 3 4 5
Self-Made or
BCCK1cookstove with
Tier 0 technical
attributes and without
CCA
Self-Made Cookstove
or
BCCK cookstove with
Tier 0 technical
attributes with CCA,
or BCCK cookstove
with Tier 1 technicalattributes without
CCA
BCCK cookstove with
Tier 1 technical
attributes with CCA,
or BCCK cookstove
with Tier 2 technical
attributes withoutCCA
BCCK cookstove with
Tier 2 technical
attributes with CCA,
or BCCK cookstove
with Tier 3 technical
attributes withoutCCA
BCCK cookstove with
Tier 3 technical
attributes with CCA,
or BLEN2cookstove or
BCCK cookstove with
Tier 4 technicalattributes without
CCA
BLEN cookstove or
BCCK cookstove with
Tier 4 technical
attributes and with
CCA
Technical
Conformity,Convenience &
Achievement
Likely Cookstove
Technology
(indicative)
Incre asing technical specification (Efficiency, Indoor Pollution, Overall Pollution &
Achievement of Conformity, Convenience & Achievement adds one Tier
BCCK = Biomass, Coal, Charcoal or Kerosene
BLEN = Biogas, LPG, Electricity, Natural Gas
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Incorporation in ActionPlans - Process
Establish
baseline for
Energy Access
extent and
levels
Review
Decentralized
Energy Access
Ecosystem
Participatory
Mapping of
Decentralized
Energy Access
Markets
Review decentralized (and
centralized) solutions
(economics, financial/other
requirements, scale
potential)
Identify priority
decentralized
solutions
Identify enabling
actions
Identify potential
Scale Programmes
Formulate Action
Plans & set Targets
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Decentralized Energy Characteristics for Comparison
Through life economics (cost $/day)
Capital requirements
Local value retention
Potential for scale
Market fit/enabling actions required Wider ecosystem fit/enabling actions required
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Prioritization of Cooking Options -
Economics
0.00
0.50
1.00
1.50
2.00
2.50
0 1 2 3 4 5
$/Day/HH
Anticipated Energy Access Tier
Fig 8 Household Cooking - Cost vs Access Tier
Wood/ Agricultural Residues
CoalCharcoal
Kerosene
Pure Plant Oil/Jatropha Seed
LPG
Biogas (concrete/polyethylene)
Bioethanol
Hydro Minigrid
Increasing levels of access using same fuel are achieved with increasing stove technology
Electricity (hydro minigrid) cooking costs have been calculated as the increment to a Tier 5electricity service, and would not be matched on a stand-alone basis
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Comparison of Cooking Options
Capital Required
0
50
100
150
200
250
300
350
400
450
$/HH
Fig 13. Household Cooking - User Capital Required byTechnology and Access Tier
EA User Capital
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Comparison of Electricity Options -
Economics
0.00
1.00
2.00
3.00
4.00
5.00
6.00
7.00
8.00
0 1 2 3 4 5
$/Day/HH
Anticipated Energy Access Tier
Fig 9 Household Electricity Service - Cost vs Access Tier
Solar PV
Biomass Minigrid
DG Minigrid
Solar Lanterns
Kerosene Lamps
Hydro Minigrid
Grid Extension 20km
Grid Extension 50km
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Comparison of Electricity Options -
Economics
0.00
1.00
2.00
3.00
4.00
5.00
6.00
0 1 2 3
$/Day/HH
Anticipated Energy Access Tier
Fig 9 Household Electricity Service - Cost vs Access Tier
Solar PV
Biomass Minigrid
DG Minigrid
Solar Lanterns
Kerosene Lamps
Hydro Minigrid
Grid Extension 20km
Grid Extension 50km
Focussin g on Tiers 1-3:
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Comparison of Electricity Options -
Economics
Relat ive costs are highly context specif ic:
0.00
5.00
10.00
15.00
20.00
25.00
1 20 300 1,000
$/Day/HH
Number of Households in Community
Fig 10 Variation in Cost of Household TEA Tier 2 Electricity Service with Technology &
Community Size
Hydro Minigrid
Solar PV
Biomass Minigrid
DG Minigrid
Grid Extension 50km
Grid Extension 20km
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Comparison of Electricity Options
- Capital Required
0
2000
4000
6000
8000
10000
12000
KeroseneLamps-T0
SolarLanterns-T1
DGMinigrid-T1
BiomassMinigrid-T1
HydroMinigrid-T1
SolarPV
-T1
GridExtension20km-
T1
GridExtension50km-
T1
DGMinigrid-T2
BiomassMinigrid-T2
HydroMinigrid-T2
SolarPV-T2
GridExtension20km-
T2
GridExtension50km-
T2
DGMinigrid-T3
BiomassMinigrid-T3
HydroMinigrid-T3
SolarPV-T3
GridExtension20km-
T3
GridExtension50km-
T3
DGMinigrid-T4
BiomassMinigrid-T4
HydroMinigrid-T4
SolarPV-T4
GridExtension20km-
T4
GridExtension50km-
T4
DGMinigrid-T5
BiomassMinigrid-T5
HydroMinigrid-T5
GridExtension20km-
T5
GridExtension50km-
T5
$/HH
Fig 12. Household Electricity - Access Provider and User CapitalRequirement by Technology and Access Tier
EA User Capital
EA Provider Capital
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Comparison of Options
A Key Debate
Giving priority to achieving universal access at Tier 2 or 3 will
maximize benefits to those at the bottom-of-the-pyramid and
achieve the greatest possible impact with resources available
BUTEvidence from Asia indicates that delivery of minimalist
energy services focused simply on the basic energy needs of
poor households (lighting homes and cooking) is not effective
in poverty reduction
The conclusion reached on this issue of principle will strongly
influence the focus of national Action Plans and the balance
between centralized and decentralized solutions
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Comparison of Energy Options
Expected Local Value Retention
Capital
Equipment
Costs
Civil &
Installation
Costs
Fuel & Other
Operating
Costs Overall
Centralized Generation + Grid Extension L M n/a L
Renewable Minigrids M H n/a MDiesel Minigrids L H L L
Solar Home Systems L H n/a L
Renewable Pico-Generators M H n/a H
Diesel Pico-Generators L H L L
Biogas systems H H n/a H
Improved Charcoal/Biomass Cookstoves H H n/a HLPG Cookstoves M n/a L L
Solar lanterns L n/a n/a L
Kerosene Lamps L n/a L L
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Comparison of Energy Options
Scale Potential
CSP PV Wind Hydro Biomass Geothermal
Central Africa 299 616 120 1,057 1,572
Eastern Africa 1,758 2,195 1,443 578 642 88
Northern Africa 935 1,090 1,014 78 257
Southern Africa 1,500 1,628 852 26 96
Western Africa 227 1,038 394 105 64
Total Africa 4,719 6,567 3,823 1,844 2,631 88
(TWh)
Africa is endowed with vast untapped renewable energy resources - IRENA
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Decentralized solutions can provide access at scale but this iscontext specific:
Hydro-powered minigrids are only economic where the
hydro resource is close to the community to be supplied
Biogas may be economically attractive, but may not be
viable in urban areas where space is at a premium
Charcoal + improved cookstoves may provide a low-cost
optionbut only within the limits of the sustainableavailability of charcoal
Geo-spatial mapping can assist in establishing proximity
between population and energy resources and hence optimum
energy access mix
Comparison of Energy Options
Scale Potential
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Incorporation in ActionPlans - Process
Establish
baseline for
Energy Access
extent and
levels
Review
Decentralized
Energy Access
Ecosystem
Participatory
Mapping of
Decentralized
Energy Access
Markets
Review decentralized
(and centralized)
solutions (economics,
financial/other
requirements, scale
Identify priority
decentralized
solutions
Identify enabling
actions
Identify potentialScale Programmes
Formulate Action
Plans & set Targets
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Comparison of Energy Options
Market Mapping
The private sector will play a key role in energy access provision
particularly for decentralized solutions
Mapping decentralized energy access markets can assist in
identifying which offer the best prospects for development
Typical Market Map of a char dust Briquetting project from Senegal (FAO, 2009)
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Comparison of Energy Options
Market Mapping
Participatory market mapping also provides a means of:
- Identifying actions needed to catalyze market development
- Ensuring that all relevant stakeholders, including civilsociety organizations, are engaged in the national Action
Plan development process, and that the views of poor and
disadvantaged groups are incorporated
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Incorporation in ActionPlans Access Ecosystem
Market (and public) energy access
provision operates within a wider
ecosystem encompassing:
Policy
Financial Services
Capacity
Assessing the prevailing ecosystem
allows policy makers to:
Prioritize decentralized solutions which
fit well with the existing ecosystem
Identify measures facilitate delivery of
priority solutions to include in Action
Plans
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Incorporation in ActionPlans Access Ecosystem
Success Conditions for decentralized energy access differ from those forcentralized solution (and between different decentralized options):
=> Need to consider and prioritize specific decentralized solutions in Action Plans
Type of
Energy AccessPolicy Requirements Finance Requirements Capacity Requirements
Policy makers understanding of energy market regulation
Relatively small number of highly trained technical and business
staff to support large energy projects and operate plant
Local facilities for plant repair and maintenance
Business models for community level provision and toolkits for
use by providers
Significant numbers of developers with energy access technology
knowledge and business skills and technicians with skills to
operate and maintain plants
Local facilities for plant repair and maintenance
Readily available information on existing energy access, demand,
expenditure and availability of primary energy (to reduce
transaction costs)
Innovative payment platforms to ease end-user capital need and
reduce provide overheads
Local manufacture of goods and products
Consumer awareness of modern energy access benefits
Entrepreneurial distribution and marketing channels
Markets for servicing and repair developed alongside
manufacture and sales
End-user finance
Centralized
Policies and regulation on private
sector energy project development
and supply of energy to national
utility
Sophisticated facilities
providing large individual
tranches of finance to small
number of energy access
providers
Community
Level
Policies and regulations which
facilitate development and
operation of minigrids by private
sector companies and community
entities
Household/
Facility Level
& Appliances
Defined quality standards for
energy access products
Finance for early-stage project
development
Facilities accessible by small-
scale developers and
community entities, withrepayment backed by user
payments
Start-up finance for
entrepreneurs
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Incorporation in ActionPlans - Process
Establish
baseline for
Energy Access
extent and
levels
Review
Decentralized
Energy Access
Ecosystem
Participatory
Mapping of
Decentralized
Energy Access
Markets
Review decentralized
(and centralized)
solutions (economics,
financial/other
requirements, scale
Identify priority
decentralized
solutions
Identify enabling
actions
Identify potential
Scale Programmes
Formulate Action
Plans & set Targets
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Moving from Projects to Scale
Programmes:
Real impact depends on delivery at scale
Decentralized energy access has already been delivered at
scale:
IFC Lighting Africa programmes
GACC/Improved Cookstoves Programmes
EU-funded Developing Energy Enterprises in East Africa
Requires ambition and commitment
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Incorporation in ActionPlans - Process
Establish
baseline for
Energy Access
extent and
levels
Review
Decentralized
Energy Access
Ecosystem
Participatory
Mapping of
Decentralized
Energy Access
Markets
Review decentralized
(and centralized)
solutions (economics,
financial/other
requirements, scale
Identify priority
decentralized
solutions
Identify enabling
actions
Identify potentialScale Programmes
Formulate Action
Plans & set Targets
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Conclusions:
The combination of centralized and decentralized energy
access solutions will be different for each country but
some general conclusions may be drawn regarding the
factors to be considered in incorporating decentralized
options into the national Action Plan process:
Decentralized technologies provide the best energy
access option for many
Decentralized energy access solutions have different
characteristics and requirements. National Action Plans
should prioritize specific solutions so that the conditions
for success can be created for these priority solutions.
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Conclusions continued:
Much decentralized energy access will be delivered by
the private sector. Market mapping can provide a
means of understanding the conditions required for
healthy decentralized energy markets, and identifying
interventions needed to establish these conditions
Market mapping should involve the full range of market
actors, as well as those providing supporting services
and forming the enabling environment. This can
provide a valuable means for ensuring that all relevantstakeholders are engaged in the national Action Plan
development process
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Conclusions continued:
Targets for decentralized energy access delivery which
encompass all aspects of Total Energy Access - energy
for productive uses and for community services, as well
as for household cooking and electricity - will ensure
the greatest overall benefits from improved energy
access are achieved.
Prioritization of decentralized options which offer Tier 2-
3 access will focus benefits on those at the bottom-of-
the pyramid and maximize benefits achievable withavailable resources. Meanwhile targets for specific
groups can contribute to reducing poverty; achieving
the MDGs; and reducing inequality.
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Conclusions continued:
Higher energy access levels will require increases in
expenditure. Programmes aimed at these higher
access levels will therefore need to combine strategic
use of public money with pro-active initiatives to raise
user incomes.
If decentralized energy access provision is to achieve
its potential, solutions must be delivered strategically,
through scale programmes. Identification of such
programmes should form a key element of nationalAction Plans.
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Thank you
www.practicalaction.org/consulting
Comparison of Energy Options
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Comparison of Energy Options
Role of Geo-spatial Mapping
From Rwanda Electricity Access Scale Up Program and Swap Development
Eng. Yussuf Uwamahoro
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Comparison of Cooking Options -
Economics
Moving from traditional to modern Tier 2-3 => cost savings
Efficient wood cookstoves, in particular, offer an economic
means of achieving Tier 2 or 3 (if wood sustainably
available)
Biogas provides an economic high level (Tier 4) cooking
energy solution where this is a practicable solution
Even Tier 4-5 cooking solutions are not substantially more
expensive than currently available, inefficient charcoal, coal
and kerosene stoves for urban residents
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Decentralized Energy Need and Benefits
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Decentralized Energy Need and Benefits
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Decentralized Energy Options
Electricity Mechanical Power
Minigrids powered by
hydro, wind, biomass,
solar or diesel
generation
Multi-function
platforms
HouseholdEnterprise
Facility
Level
Solar/wind home
systems, pico-hydro/
-biomass/-biodiesel
generators
Solar lanterns
wind/ bio-diesel/
hydro/ solar pumpsand mills;
treadle pumps;
Cooking & Heating
Community Level
Clean, efficient
cookstoves;
solar heaters;
solar/gas
refrigerators
Biogas systems
Appliances
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Accessing improved energy for cooking requires capitalinvestment improving affordability and access to finance
is a key enabler
Achieving improved access requires higher technology, and
hence higher capital investment, but there are variations
within that broad trend
Biogas systems in particular are relatively capital intensive
Comparison of Cooking Options
Capital Required
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Comparison of Electricity Options -
Economics
Tier 1 electricity access can be achieved at a lower costthan existing solutions (ie than kerosene lamps)
Tiers 3+ require increased expenditure and so will rely on
increasing incomes and/or public funding if those at the
bottom of the pyramid are to achieve higher access
Decentralized solutions are highly competitive with
centralized solutions at lower access tiers but become
progressively less competitive at higher levels
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Comparison of Electricity Options -
Capital Required
The general trend is of increasing capital for higher levels ofaccess, but theres also considerable variation within tiers
For lower tiers, decentralized solutions require significantly
less capital than grid extension
Even for higher access tiers some decentralized solutions
remain competitive in capital terms