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− | <p style="text-align: center;"><span style="color:#203865ff;">'''Finance: Forms of funding used to finance electricity access'''</span><span style="color:#203865ff;">'''<br/>'''</span></p><p style="text-align: center;"><span style="color:#203865ff;"</span></p> | + | <p style="text-align: center;"><span style="color:#203865ff;">'''Finance: Forms of funding used to finance electricity access'''</span></p> |
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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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− | | style="width: 10px; background-color: rgb(248, 101, 0);" | <span style="color:#FFFFFF;"></span><br/> | + | | style="width: 10px; background-color: rgb(49, 49, 152);" | <span style="color:#FFFFFF;"></span><br/> |
| | 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(50, 100, 154);" | | | | style="width: 117px; background-color: rgb(50, 100, 154);" | |
| <span style="color:#FFFFFF;">Delivery Models</span><br/> | | <span style="color:#FFFFFF;">Delivery Models</span><br/> |
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− | | style="width: 10px; background-color: rgb(248, 101, 0);" | <span style="color:#FFFFFF;"></span><br/> | + | | style="width: 10px; background-color: rgb(49, 49, 152);" | <span style="color:#FFFFFF;"></span><br/> |
| | 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(154, 103, 0);" | <br/> | + | | style="width: 117px; background-color: rgb(204, 51, 0);" | |
| + | <span style="color:#FFFFFF;">Price/Tariff Regulation</span><br/> |
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| | style="width: 616px;" | | | | style="width: 616px;" | |
| Is a critical factor for private investment in electrification, with inadequate or inappropriate price/tariff regulation often cited as the key barrier to such finance. Whatever form of price/tariff regulation is used the critical requirement is that it is clear and transparent, as without this, private financiers will see a significant risk of political pressure reducing prices or tariffs to the point below which they fail to cover investment costs. | | Is a critical factor for private investment in electrification, with inadequate or inappropriate price/tariff regulation often cited as the key barrier to such finance. Whatever form of price/tariff regulation is used the critical requirement is that it is clear and transparent, as without this, private financiers will see a significant risk of political pressure reducing prices or tariffs to the point below which they fail to cover investment costs. |
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− | | style="width: 10px; background-color: rgb(248, 101, 0);" | <span style="color:#FFFFFF;"></span><br/> | + | | style="width: 10px; background-color: rgb(49, 49, 152);" | <span style="color:#FFFFFF;"></span><br/> |
| | style="width: 117px; background-color: rgb(32, 56, 100);" | | | | style="width: 117px; background-color: rgb(32, 56, 100);" | |
| <span style="color:#FFFFFF;">Other forms of Finance</span><span style="color:#FFFFFF;"></span><br/> | | <span style="color:#FFFFFF;">Other forms of 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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− | | style="width: 10px; background-color: rgb(248, 101, 0);" | <br/> | + | | style="width: 10px; background-color: rgb(49, 49, 152);" | <br/> |
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| If private finance is attracted, it can support rapid electrification at a large scale, and can free up public funding to be used for other things. If market conditions are such as to attract purely private finance, this indicates that the electrification process will be self-sustaining without dependence upon external grants or subsidies from the government or donor organisations. Where customers are able to pay for electricity at a level that allows the supply to be maintained under market conditions, there is no concern over the withdrawal of public funding that may then prevent continued access to electricity. Experience also indicates that involvement of private finance can drive innovation and efficiencies in electrification as in other sectors. | | If private finance is attracted, it can support rapid electrification at a large scale, and can free up public funding to be used for other things. If market conditions are such as to attract purely private finance, this indicates that the electrification process will be self-sustaining without dependence upon external grants or subsidies from the government or donor organisations. Where customers are able to pay for electricity at a level that allows the supply to be maintained under market conditions, there is no concern over the withdrawal of public funding that may then prevent continued access to electricity. Experience also indicates that involvement of private finance can drive innovation and efficiencies in electrification as in other sectors. |
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− | *<span>EUEI PDF (2014), Mini-grid Policy Toolkit: Policy and Business Frameworks for Successful Mini-grid Roll-outs [http://www.euei-pdf.org/sites/default/files/field_publication_file/RECP_MiniGrid_Policy_Toolkit_1pageview_(pdf,_17.6MB,_EN_0.pdf http://www.euei-pdf.org/sites/default/files/field_publication_file/RECP_MiniGrid_Policy_Toolkit_1 pageview_(pdf,_17.6MB,_EN_0.pdf]</span><br/>
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− | *IRENA (2016), Policies and regulations to support renewable energy mini-grid development through private sector <span style="font-size: 13.6px;">involvement [http://www.irena.org/DocumentDownloads/Publications/IRENA_Policies_Regulations_mini-grids_2016.pdf http://www.irena.org/DocumentDownloads/Publications/IRENA_Policies_Regulations_mini-grids_2016.pdf]</span>
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| {| border="1" cellspacing="1" cellpadding="1" style="width:100%;" | | {| border="1" cellspacing="1" cellpadding="1" style="width:100%;" |
| |- | | |- |
− | | style="width: 10px; background-color: rgb(248, 101, 0);" | <br/> | + | | style="width: 10px; background-color: rgb(49, 49, 152);" | <br/> |
| | | | | |
| *[[NAE Case Study: Bangladesh, IDCOL Solar Home Systems|Bangladesh, IDCOL Solar Home Systems]]<br/> | | *[[NAE Case Study: Bangladesh, IDCOL Solar Home Systems|Bangladesh, IDCOL Solar Home Systems]]<br/> |
| *[[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/> |
| *[[NAE Case Study: Cambodia “Light Touch” Regulation|Cambodia “Light Touch” Regulation]]<br/> | | *[[NAE Case Study: Cambodia “Light Touch” Regulation|Cambodia “Light Touch” Regulation]]<br/> |
| + | *[[NAE_Case_Study:_Ethiopia,_Solar_Market_Development|Ethiopia, Solar Market Development]]<br/> |
| *[[NAE Case Study: Kenya, Off-Grid for Vision 2030|Kenya, Off-Grid for Vision 2030]]<br/> | | *[[NAE Case Study: Kenya, Off-Grid for Vision 2030|Kenya, Off-Grid for Vision 2030]]<br/> |
− | *[[NAE Case Study: Peru, Concession Model for Standalone Systems|Peru, Concession Model for Standalone Systems]]<br/> | + | *[[NAE_Case_Study:_Mali,_Rural_Electrification_Programme|Mali, Rural Electrification Programme]]<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/> | | *[[NAE Case Study: Rwanda, Sector-Wide Approach to Planning|Rwanda, Sector-Wide Approach to Planning]]<br/> |
− | *[[NAE Case Study: South Africa, Integrated National Electrification|South Africa, Integrated National Electrification]]<br/> | + | *[[NAE_Case_Study:_Tanzania,_Mini-Grids_Regulatory_Framework|Tanzania, Mini-Grids Regulatory Framework]]<br/> |
− | *[[NAE Case Study: Tunisia, Low Cost Distribution Technology|Tunisia, Low Cost Distribution Technology]]<br/>
| + | |
| *[[NAE Case Study: Vietnam, Rapid Grid Expansion|Vietnam, Rapid Grid Expansion]]<br/> | | *[[NAE Case Study: Vietnam, Rapid Grid Expansion|Vietnam, Rapid Grid Expansion]]<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 -