Innovations in Energy Access - World Banksiteresources.worldbank.org/INTENERGY2/Resources/innovation.pdf · • Douglas Barnes, ESMAP, GVEP Task Manager & Energy Poverty Coordinator

Energy Learning Event SDN Week February 26, 2008

Innovations in Energy Access:Involving Small and Medium Energy Providers in

World Bank Energy Projects

2:00 Opening Orientation Conveners

Norms and Creativity

Context Set Up

Facilitator

Poster Walk Exchanges All

Dialogue &Discussions

Group Work Mix and Max

4:45 Closing Next Steps from Here

Conveners

5:00 Cocktails Farewell All

• Douglas Barnes, ESMAP, GVEP Task Manager & Energy Poverty Coordinator

• Peter Davies, Senior Infrastructure Adviser – Energy DFID

• Sarah Adams, CEO, GVEP International• Marlon Lezama, ESMAP, Task Manager Small and

Medium Enterprise (SME) Program• Elisa Derby, GAPFund Manager, Winrock Int’l.

Innovations in Energy Access: Involving Small and Medium Energy Providers in World

Bank Energy Projects

Energy Learning Event SDN Week February 26, 2008

Issues Faced by World Bank• Involved in large infrastructure projects for

years.• Access rates in many developing countries

is low and main utilities are inefficient and suffer from political interference

• New way of approaching energy access recommended in 1996, but implementation slow

• Face problem of how to work with small energy enterprises

• Program to provide grants to GVEP Partners engaged in all aspects of improving energy access.

• 20 projects in 11 countries in Latin America, Africa and Asia.

• Development Market Place style call for proposals: 153 Proposals and 20 Winners averaging $56k each

• Projects are displayed around the room and involve all aspects of energy access

• Winrock International is GAPFund Manager

GVEP GAPFund

• Global Program to engage the local private sector in providing sustainable and affordable energy services to the poor

• 13 projects in 12 countries and one regional program in Africa

• Fully integrated into the operational needs of recipient countries

• SMEs have a critical role in the provision of energy services in two important segments; biomass and off-grid electricity

Energy SME Program

•Changing Policy Environment•Access to electricity•Scaling up•Commitment & sense of ownership among stakeholders•Procurement of data and commitment from the top•Timeline: intensive social preparation work considered crucial by implementers can conflict with specific timeframes required by donors•Working together (Bank & partners with SMEs) in the future•Non-local material•Designing Bankable projects•Lacking access to basic infrastructure/ not enough free money available•Finance•Local culture•Changing old habits•Local cooking habits•Communities’ sluggishness in responding to community action/competing interest•Attitudes

• Better integration overall• Integrating economic activities in projects so as to make them sustainable

→ Bringing together electricity projects with micro-enterprises, health and education programs

• Sustainable concept and business model building• Productive use of energy services• Bank support development of institutional structure for implementing energy

programs• Improve local policy environment• Bank long-term support to measure impact and achievement scale• Knowledge sharing information dissemination • Policy development• Introduce new partners • The energy projects must be done with all stakeholders possible, especially

the financial sector• Local policy environment • Entrepreneurship, development and incubator

• Lack of initiative• Changing of minds• Scaling up already proven models• Private sector participation• Lacking financing models for energy enterprises• Implementation of projects at the grass-root level and how to

maintain the sustainability of the projects• Sustainable energy projects• Sustainable resource base – AERF• Management → Off-grid decentralized generation → Being

sustainable after installation

• Sustainability• Local institutional capacity (people)• Developing social preparation projects prior to implementation• Government Support• Financing • Govern ability (local social organization)• Life cycle of the project process• Access to finance• Not close enough relations with NGOs & other organizations at

the local level• Not enough same minded partners → consistency in support →

fast response → empowered choice

• Consistent messages• Time Management• Time management → end user• The social assessment and appraisal needed is mostly missing →

sustainability• Scaling up → smaller solutions• Getting local counterpart to reach out (customer service oriented)• Convincing others to look at things in different ways or think

differently from what they are used too• Donor Priorities• Transaction costs for projects <$10M result in multi-million portfolio

priority rather than small projects• Performance can be judged by quantity (multimillion transactions)

rather than on quality, penalizing small engagements

• Meeting the needs of the end-users so they actually adopt the technology• Sustainability• Covering costs• Time• Implementation of small projects under Bank’s rules• Many good small projects, but not enough cross fertilization or support• Changing status quo to deal with SMEs is hard• Perhaps CDD approach• Local capacity/capability• Idea from Bank perspective: Change = Agent → Champion Needed• Possible Block Grant • Changing status quo• Getting Started• Create household market demand for commercial stoves (change mindsets) • Multi-players• Capacity• Get reliable information• Aligning SME objectives to internal priorities

• Developing/Supporting sustainable business models

• Introducing best practices/concepts of sustainability of Business Models

• Providing skills on sustainability to practitioners and entrepreneurs

• Provide financing• Improvements on local

policy

Knowledge Sharing• Communication, Translation,

Forums

Enterprise/Markets• Development and Productive

use of energy services

Long-term Rural Energy funds & Technical Assistance

Block Fund/Grant•Use a mixed approach working with government and local

stakeholders directly•Fund incentive for preparation work•Cooperative based approach – project development/bottom up

PIY

Incentive Bank•Task managers to focus on access & SMEs•Bank local/field presence working with local groups to

increase local ownership•Focus on quality over quantity of projects

•Validation of the technology before implementation•Education Discussion•More Ownership from the countries•DIWAMIE facilitation and coordination•Do not portray energy access solutions as introduction the new technology•Suitable technology•Promote awareness raising•Public Education or Awareness creation•Stakeholder Consolation•Basic Research•Time•Community Engagement•Local Habits/Culture• a. Community needs assessment• b. Involvement of stakeholders•Local Presence → Sustained support, financing