Household e nergy in smallholder contexts: learning platform needs and opportunities

1. Household energy in smallholder contexts: learning platform needs and opportunities

2. Presentation outline • IA priorities: Limerick recap • Global context: “Sustainable Energy for All” • Access to Household Energy – state of play, “delivery models”, finance issues • HH energy in the IA learning platform – next steps • Resources

3. IA and energy • Clear links between energy and key IA policy objectives • Environmental sustainability and CC adaptation & mitigation • Food security and poverty reduction • Health, education and gender aspects • Interest areas identified in Limerick - recap • Household energy - financing stove & solar programme (carbon credits), promoting adoption • Productive energy - irrigation, food processing • Bioenergy - sustainable biomass and household cooking • Energy pathways - what trajectories enable ‘green leapfrogging’, promote jobs, livelihoods, gender and food security?

4. Energy in the wider context: Sustainable Energy for All • UN SE4ALL as an important ‘soft’ governance framework • Launched by UNSG in 2012, 3 voluntary goals to 2030: • Universal access to modern energy services • Double the global rate of improvement in energy efficiency • Double the share of renewable energy in the global energy mix (Plus cross-cutting nexus targets: health, water, women, food) • Relevance to Irish Aid? • SE4ALL targets are in draft SDG goals – the future aid framework • IA countries signed up and developing national action plans – but who will fund these, how can they be more inclusive of civil society? • Useful soft political space - avoids zero sum of climate negotiations

5. Rural household energy: what’s the state of play? • We broadly know the barriers, solutions and enabling factors – key challenges are implementation, scaling up and speed • Technology not a key issue – many mature technologies, falling costs (solar) • Huge investment needed in decentralized and off-grid in rural SSA • Policy levers known – feed-in-tariffs, quality standards – but not implemented • Linked to weak institutional capacity, politics, inefficiency in state-owned enterprises • Some notable successes in solar PV, cooking stoves - but many still pilots • Few examples of productive uses of modern energy in smallholder contexts • No standardised ‘delivery models’ – models of ownership, financing, distribution etc. vary hugely by context, though common success factorsexist.

6. Designing and understanding pro-poor energy services: ‘delivery model’ framework (IIED)

7. Financing household energy • Donors and govts keen on private sector financing energy access – and ending problems of ‘free distribution’ - but usually private sector reaches less poor customers who can afford to pay • Key finance gaps are for i) small-scale entrepreneurs ii) end users • Innovations emerging e.g. Angel investors, business innovation hubs, pay as you go technology, public-private partnerships (IDCOL Bangladesh) • Carbon finance? Future unclear but practitioner success stories: • Impact Carbon with Ugastove in Uganda and Jiko Stove Kenya • Practical Action / Carbon Clear LPG for cooking in North Darfur • Dutch NGO HIVOS – significant experience in carbon credits for biogas

8. Donor role in stimulating private sector investment in low-income energy markets: some options Coordinating • Link entrepreneurs and investors; NGOs/business; private/public sectors • Gather country information for business support/finding partners • Coordinate market analysis, resource mapping, data collection/info sharing Guiding • Influence governments to generate supportive policy/economic frameworks • Promote incentives, e.g. fossil fuel subsidy reform; eliminating import taxes; tax benefits for local manufacturing; feed-in tariffs Demonstrating Stimulating • Showcase/validate viable business models for replication • Capacity building in financial institutions to understand viability • Develop standardised methods for measuring impact beyond profit • Stimulate investment funds aimed at markets with low returns/high risk • Guarantees for private investment • Encourage public sector adoption of new technologies and public/private support for research and education

9. Discussion & IA learning platform • Insights from Ethiopia and Malawi programme: what’s working, what’s not in the “energy delivery model”? • What’s the first priority for IA learning? E.g. • Understanding policy issues or programme design? • Carbon finance, productive energy, bioenergy or ‘macro’ energy pathways? • What could a case study look at: IA work, experiences of others? • What could be the next step after a case study?

10. Resources (examples only –there are more) Carbon finance: • Practical Action, Sudan: http://www.theguardian.com/global-development-professionals-network/2014/apr/17/women-darfur-sudan-carbon-credits • HIVOS https://hivos.org/focal-area/carbon-finance. Technical adviser is Harry Clemens • JorundBuen, Prime Cookstoves and Differ – expert in carbon credits and in cookstoves (http://www.primestoves.com/team/) Designing energy delivery models • IIED Case studies: http://pubs.iied.org/16038IIED.html • IIED Conceptual framework: http://pubs.iied.org/16551IIED.html Energy and smallholder agriculture / productive uses • IIED lit review: http://pubs.iied.org/pdfs/16562IIED.pdf • GIZ/ESMAP PRODUSE initiative/manual: http://www.produse.org/ • Productive uses of thermal energy: http://www.produse.org/index.php?lang=eng&page=14/ • Irrigation http://www.snvworld.org/sites/www.snvworld.org/files/documents/re_for_smallholder_irrigation.pdf • Energypedia ‘portal’ https://energypedia.info/wiki/Portal:Productive_Use Nexus tools (food, energy, water) • http://www.fao.org/energy/81320/en/ • http://www.water-energy-food.org/en/practice/assessment.html

11. Thank you for your attention! Contact: ben.garside@iied.org, sarah.best@iied.org www.iied.org/energy Credit: G.M.B. Akash/PANOS