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− | *[[NAE_Case_Study:_Costa_Rica,_Distribution_Cooperatives|Costa Rica, Distribution Cooperatives]]<br/>
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− | *[[NAE_Case_Study:_Mali,_Rural_Electrification_Programme|Mali, Rural Electrification Programme]]<br/>
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− | *[[NAE_Case_Study:_Philippines,_Islanded_Distribution_by_Cooperatives|Philippines, Islanded Distribution by Cooperatives]]<br/>
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− | *[[NAE_Case_Study:_Tanzania,_Mini-Grids_Regulatory_Framework|Tanzania, Mini-Grids Regulatory Framework]]<br/>
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− | = Public-Private Partnership Delivery Model =
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− | '''<span style="color:#FFFFFF;"><span style="font-size: 13.6px;">Definition:</span></span>'''<br/>
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− | '''Delivery of electricity access by an entity which is part publically and part privately owned or by a mix of publically and privately owned entities or using a combination of public and private finance'''<br/>
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− | This includes cases where:
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− | *a joint venture has been created between a state-owned organisation and a private company to provide electricity<br/>
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− | *one or more state-owned organisation fill some of the functions along the market chain1, while others are filled by private businesses<br/>
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− | *electricity provision is undertaken by private businesses with public financial support (subsidies, grants, loans etc)
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− | == Internactions wiht other NAE Categories: ==
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− | <span style="color:#FFFFFF;">Technology</span><br/>
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− | Public-private models for grid systems might include:
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− | *Publically owned generation and transmission combined with privately owned distribution;<br/>
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− | *Independent Power Producers (IPPs) connected to a publically owned transmission/distribution system;<br/>
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− | *<span style="font-size: 13.6px;">A privately owned grid system using grants from public sources to connect new users.</span>
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− | <span style="font-size: 13.6px;">For grid connected mini-grids and distribution systems:</span><br/>
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− | *Mini-grids owned by a private developer connected to the (publically-owned) main grid, and thereby drawing on publically owned generation to meet demand;<br/>
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− | *A private company, or public-private joint venture, taking on operation of a section of the publically-owned grid distribution system;<br/>
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− | *Public grants or subsidies supporting development of a privately-owned mini-grid or distribution system.<br/>
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− | For isolated mini-grids:
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− | *Mini-grids developed on a Build-Own-Operate-Transfer basis (initially owned and operated by a private developer, but transferred to public ownership at the end of a concession period);<br/>
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− | *Mini-grids built and operated by a public-private joint venture;<br/>
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− | *Public grants or subsidies supporting development of a privately-owned mini-grid.
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− | Use of public finance (grants, subsidies and loans) to enhance affordability and support market growth often results in a public-private model for standalone systems, even when there is a purely private-sector chain of manufacturers, importers, distributors and retailers. There could also be benefits in some circumstances from government energy agencies becoming directly involved in the standalone system market, by forming a joint entity to supply systems or by taking on one of the roles along the value chain (eg providing a distribution service for all system providers), as a means of supporting market development.
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− | <span style="color:#FFFFFF;">Legual Basis</span><br/>
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− | Because a public-private model involves private ownership and investment, an explicit legal framework will be required for any form of electrification which involves significant long-term capital investment in order to attract private finance and allow for price regulation to protect users. A concession, which offers protection from competition, will provide the greatest attraction for private financiers. Where no long-term capital investment is involved, as with standalone systems sold directly to users, no legal control (beyond that for any business) may be necessary – however if there is partial public sector ownership, a transparent legal framework <span style="font-size: 13.6px;">may be required to convince private market participants that they are not facing unfair competition, and also to ensure that </span><span style="font-size: 13.6px;">any public finance is not being misused. </span>
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− | | style="width: 10px; background-color: rgb(100, 203, 248);" | <span style="color:#FFFFFF;"></span><br/>
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− | <span style="color:#FFFFFF;">Price/Tariff Regulation</span><br/>
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− | Where significant capital investment is involved, a transparent framework for price/tariff regulation is likely to be required to attract the private element into any public-private partnership. Tariff regulation will also protect users and provide a means of ensuring that public finance is not being misused or exploited by the private sector. It may also demonstrate to private market participants that they are not facing unfair competition from partially publically-owned market participants.
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− | <span style="color:#FFFFFF;">Finance</span><br/>
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− | All public-private partnerships will involve a combination of private and public finance. Private finance will come through ownership and investment in, and loans to electricity providers. Public finance may come through these routes, but may also be through various forms of grant, subsidy, tax exemption or guarantee. Ultimately public-private models, like other forms of electricity provision, will rely on connection and ongoing charges, and standalone system purchases from users. For multi-user systems (grids and mini-grids) there is also likely to be some element of cross-subsidy between users.
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− | <span style="color:#FFFFFF;">Non-Financial Interventions</span><br/>
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− | National energy planning is key to establishing the optimum mix of technologies to meet electrification needs across the country, regardless of the delivery model employed. Institutional restructuring may be needed to establish public-private partnerships and capacity building or technical assistance may be required if the key actors lack the capacity to undertake regulatory reform or design arrangements for public financial support. Awareness raising amongst users and other potential market actors and service providers, as well as training (capacity building) to develop the skilled workforce needed by new energy access businesses can be beneficial alongside financial forms of public support. Public-private partnership may also provide the means to bring in new technology, with the private sector providing the technology know-how while the public sector bears the risk inherent in new technology which private investors may be reluctant to take on. <br/>
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− | == Advantages and Disadvantages (Including Level of Electricity Provided) ==
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− | Public-Private partnerships offer the potential to combine the benefits of both models, with public security being combined with private efficiency, innovation and flexibility. Bringing in private finance can extend the capacity for electricity provision beyond that which the public sector alone can offer, while public financial support can be used to attract private finance and make electricity affordable for users. Combining public and private inputs is not, however, simple. Significant expertise is required to ensure that private investment is attracted while making optimum use of public resources. Moreover the appropriate form of public-private partnership will change as markets develop and levels of electricity access increase – and this must be recognised while at the same time creating regimes which can give the private sector the confidence in the future they require to invest.
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− | == Further Informaiton and Guidance ==
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− | *<span>Clean </span><span>Energy Solutions Centre & </span><span>iied</span><span>. (2015). Policies to Spur Energy </span><span>Access</span> <span><u><span>[https://cleanenergysolutions.org/resources/policies-spur-energy-access https]</span></u><u><span>[https://cleanenergysolutions.org/resources/policies-spur-energy-access ://]</span></u><u><span>[https://cleanenergysolutions.org/resources/policies-spur-energy-access cleanenergysolutions.org/resources/policies-spur-energy-access]</span></u></span>
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− | == Relevante Case Studies: ==
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− | *[[NAE Case Study: Bangladesh, IDCOL Solar Home Systems|Bangladesh, IDCOL Solar Home Systems]]<br/>
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− | *[[NAE Case Study: Brazil, Luz para Todos (Light for All)|Brazil, Luz para Todos (Light for All)]]<br/>
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− | *[[NAE Case Study: Cambodia “Light Touch” Regulation|Cambodia “Light Touch” Regulation]]<br/>
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| *[[NAE Case Study: Costa Rica, Distribution Cooperatives|Costa Rica, Distribution Cooperatives]]<br/> | | *[[NAE Case Study: Costa Rica, Distribution Cooperatives|Costa Rica, Distribution Cooperatives]]<br/> |
− | *[[NAE Case Study: Ethiopia, Solar Market Development|Ethiopia, Solar Market Development]]<br/>
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− | *[[NAE Case Study: Kenya, Off-Grid for Vision 2030|Kenya, Off-Grid for Vision 2030]]<br/>
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| *[[NAE Case Study: Mali, Rural Electrification Programme|Mali, Rural Electrification Programme]]<br/> | | *[[NAE Case Study: Mali, Rural Electrification Programme|Mali, Rural Electrification Programme]]<br/> |
− | *[[NAE Case Study: Nepal, Rural Energy Development Programme|Nepal, Rural Energy Development Programme]]<br/>
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− | *[[NAE Case Study: Peru, Concession Model for Standalone Systems|Peru, Concession Model for Standalone Systems]]<br/>
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| *[[NAE Case Study: Philippines, Islanded Distribution by Cooperatives|Philippines, Islanded Distribution by Cooperatives]]<br/> | | *[[NAE Case Study: Philippines, Islanded Distribution by Cooperatives|Philippines, Islanded Distribution by Cooperatives]]<br/> |
− | *[[NAE Case Study: Rwanda, Sector-Wide Approach to Planning|Rwanda, Sector-Wide Approach to Planning]]<br/>
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− | *[[NAE Case Study: South Africa, Integrated National Electrification|South Africa, Integrated National Electrification]]<br/>
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| *[[NAE Case Study: Tanzania, Mini-Grids Regulatory Framework|Tanzania, Mini-Grids Regulatory Framework]]<br/> | | *[[NAE Case Study: Tanzania, Mini-Grids Regulatory Framework|Tanzania, Mini-Grids Regulatory Framework]]<br/> |
− | *[[NAE Case Study: Vietnam, Rapid Grid Expansion|Vietnam, Rapid Grid Expansion]]<br/>
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| |} | | |} |
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| = Unregulated = | | = Unregulated = |
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− | For more information on this topic please see the [[National Approaches to Electrification – Legal Basis#Unregulated|'Unregulated' Sub-Section on the Legal Basis Page]].<br/> | + | For more information on this topic please see the [[National Approaches to Electrification – Legal Basis#Unregulated|'Unregulated' Sub-Section on the Legal Basis Page]]. |
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| = References = | | = References = |
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 -