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| [[File:Back to NAE Overview Page.png|center|800px|NAE Overview Page|alt=NAE Overview Page|link=National Approaches to Electrification – Review of Options]] | | [[File:Back to NAE Overview Page.png|center|800px|NAE Overview Page|alt=NAE Overview Page|link=National Approaches to Electrification – Review of Options]] |
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| <span style="color:#FFFFFF;"><span style="font-size: 13.6px;">Definition:</span></span><br/> | | <span style="color:#FFFFFF;"><span style="font-size: 13.6px;">Definition:</span></span><br/> |
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| '''<span></span><span></span><span>A regime under which all providers within a given category are required to sell electricity (or standalone systems) at the same price or tariff (or set of prices/tariffs). </span><span></span><span></span>''' | | '''<span></span><span></span><span>A regime under which all providers within a given category are required to sell electricity (or standalone systems) at the same price or tariff (or set of prices/tariffs). </span><span></span><span></span>''' |
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− | <span>A uniform price/tariff arrangement may:<br/></span> | + | <span>A uniform price/tariff arrangement may:</span><br/> |
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| *Address purchase costs for standalone systems or connection charges and charges for electricity used or flat monthly changes<br/> | | *Address purchase costs for standalone systems or connection charges and charges for electricity used or flat monthly changes<br/> |
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| | style="width: 117px; background-color: rgb(0, 102, 0);" | | | | style="width: 117px; background-color: rgb(0, 102, 0);" | |
| <font color="#ffffff">Technology</font> | | <font color="#ffffff">Technology</font> |
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− | | style="width: 117px; background-color: rgb(154, 103, 0);" | Delivery Models | + | | style="width: 117px; background-color: rgb(50, 100, 154);" | |
| + | <span style="color:#FFFFFF;">Delivery Models</span><br/> |
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| A uniform regulated price/tariff structure is consistent with a public delivery model, with cross-subsidy between publically-owned entities and subsidy from wider public resources being relatively straightforward. Combining uniform prices/tariffs with a private delivery model is problematic, since this model precludes public financial support, leaving cross-subsidies between providers as the only option for balancing differences in costs. The need for subsidy to support a uniform price/tariff structure is thus likely to result in a public-private partnership model rather than pure private sector delivery. | | A uniform regulated price/tariff structure is consistent with a public delivery model, with cross-subsidy between publically-owned entities and subsidy from wider public resources being relatively straightforward. Combining uniform prices/tariffs with a private delivery model is problematic, since this model precludes public financial support, leaving cross-subsidies between providers as the only option for balancing differences in costs. The need for subsidy to support a uniform price/tariff structure is thus likely to result in a public-private partnership model rather than pure private sector delivery. |
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| | style="width: 117px; background-color: rgb(154, 103, 0);" | | | | style="width: 117px; background-color: rgb(154, 103, 0);" | |
| <span style="color:#FFFFFF;"></span><span style="color:#FFFFFF;">Legual Basis</span><span style="color:#FFFFFF;"></span><br/> | | <span style="color:#FFFFFF;"></span><span style="color:#FFFFFF;">Legual Basis</span><span style="color:#FFFFFF;"></span><br/> |
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| | style="width: 117px; background-color: rgb(32, 56, 100);" | | | | style="width: 117px; background-color: rgb(32, 56, 100);" | |
| <span style="color:#FFFFFF;">Finance</span><span style="color:#FFFFFF;"></span><br/> | | <span style="color:#FFFFFF;">Finance</span><span style="color:#FFFFFF;"></span><br/> |
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| | style="width: 117px; background-color: rgb(0, 100, 100);" | | | | style="width: 117px; background-color: rgb(0, 100, 100);" | |
| <span style="color:#FFFFFF;"></span><span style="color:#FFFFFF;">Non-Financial Interventions</span><span style="color:#FFFFFF;"></span><br/> | | <span style="color:#FFFFFF;"></span><span style="color:#FFFFFF;">Non-Financial Interventions</span><span style="color:#FFFFFF;"></span><br/> |
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| A public delivery model has the advantage of making use of existing institutions. Where these organisations have strong capabilities and are efficient, a public delivery model may allow strongly focussed and effective delivery of electrification and good coordination of grid, mini-grid and stand-alone solutions. However public organisations are often monolithic and slow moving. They may be more focussed on managing existing assets than serving new consumers, particularly in remote rural areas, and they may lack the capabilities needed to deliver new forms of electricity access. They are also vulnerable to political pressure and interference, which can hamper electrification efforts and result in poor allocation of resources. Following a private sector or private-public partnership model can allow private sector finance and skills to be brought to bear and may achieve greater flexibility, speed and efficiency. | | A public delivery model has the advantage of making use of existing institutions. Where these organisations have strong capabilities and are efficient, a public delivery model may allow strongly focussed and effective delivery of electrification and good coordination of grid, mini-grid and stand-alone solutions. However public organisations are often monolithic and slow moving. They may be more focussed on managing existing assets than serving new consumers, particularly in remote rural areas, and they may lack the capabilities needed to deliver new forms of electricity access. They are also vulnerable to political pressure and interference, which can hamper electrification efforts and result in poor allocation of resources. Following a private sector or private-public partnership model can allow private sector finance and skills to be brought to bear and may achieve greater flexibility, speed and efficiency. |
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| *Barnes, D. (2007). The Challenge of Rural Electrification: Strategies for Developing Countries. Book Chapter [https://books.google.co.uk/books?id=iOBi17Pr3fIC&printsec=frontcover&source=gbs_ge_summary_r&cad=0 https://][https://books.google.co.uk/books?id=iOBi17Pr3fIC&printsec=frontcover&source=gbs_ge_summary_r&cad=0 books.google.co.uk/books?id=iOBi17Pr3fIC&printsec=frontcover&source=gbs_ge_summary_r&cad=0#v=onepage&q&f=false] | | *Barnes, D. (2007). The Challenge of Rural Electrification: Strategies for Developing Countries. Book Chapter [https://books.google.co.uk/books?id=iOBi17Pr3fIC&printsec=frontcover&source=gbs_ge_summary_r&cad=0 https://][https://books.google.co.uk/books?id=iOBi17Pr3fIC&printsec=frontcover&source=gbs_ge_summary_r&cad=0 books.google.co.uk/books?id=iOBi17Pr3fIC&printsec=frontcover&source=gbs_ge_summary_r&cad=0#v=onepage&q&f=false] |
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| *[[NAE Case Study: Brazil, Luz para Todos (Light for All)|Brazil, Luz para Todos (Light for All)]]<br/> | | *[[NAE Case Study: Brazil, Luz para Todos (Light for All)|Brazil, Luz para Todos (Light for All)]]<br/> |
The Review was prepared by Mary Willcox and Dean Cooper of Practical Action Consulting working with Hadley Taylor, Silvia Cabriolu-Poddu and Christina Stuart of the EU Energy Initiative Partnership Dialogue Facility (EUEIPDF) and Michael Koeberlein and Caspar Priesemann of the Energising Development Programme (EnDev). It is based on a literature review, stakeholder consultations. The categorization framework in the review tool is based on the EUEI/PDF / Practical Action publication "Building Energy Access Markets - A Value Chain Analysis of Key Energy Market Systems".
A wider range of stakeholders were consulted during its preparation and we would particularly like to thank the following for their valuable contributions and insights:
- Jeff Felten, AfDB - Marcus Wiemann and other members, ARE - Guilherme Collares Pereira, EdP - David Otieno Ochieng, EUEI-PDF - Silvia Luisa Escudero Santos Ascarza, EUEI-PDF - Nico Peterschmidt, Inensus - John Tkacik, REEEP - Khorommbi Bongwe, South Africa: Department of Energy - Rashid Ali Abdallah, African Union Commission - Nicola Bugatti, ECREEE - Getahun Moges Kifle, Ethiopian Energy Authority - Mario Merchan Andres, EUEI-PDF - Tatjana Walter-Breidenstein, EUEI-PDF - Rebecca Symington, Mlinda Foundation - Marcel Raats, RVO.NL - Nico Tyabji, Sunfunder -