Embed Size (px)
DESCRIPTION
Enabling Environments Switching Energy Access ON or OFF ?. Definitions of Enabling Environment. Practical Action: Critical factors and trends that shape the market-chain environment and operating conditions but may be amenable to change. - PowerPoint PPT Presentation
Citation preview
DELiVER Meeting, Ashden Awards, Wednesday 5th May 2010
Enabling Environments
Switching Energy Access ON or OFF?
DELiVER Meeting, Ashden Awards, Wednesday 5th May 2010
Definitions of Enabling Environment
Practical Action: Critical factors and trends that shape the market-chain environment and operating conditions but may be amenable to change.
World Bank: A set of conditions - often inter-related - that impact on the capacity of citizens and civil society organizations to engage in development processes in a sustained and effective manner, whether at the policy, program or project level.
United Nations: A set of interrelated conditions (such as legal, bureaucratic, fiscal, informational, political, and cultural) that impact on the capacity of development actors to engage in development processes in a sustained and effective manner.
DELiVER Meeting, Ashden Awards, Wednesday 5th May 2010
How factors are generated
These factors are generated by:
1] Structures (infrastructure, national and local authorities, research agencies, etc).
2] Institutions (policies, regulations, cultural practices, etc) that are beyond the immediate direct control of economic actors in the market-chain.
DELiVER Meeting, Ashden Awards, Wednesday 5th May 2010
Why study Enabling Environments?
Charting this environment can help actors understand the trends that are affecting the entire market-chain, and examine the powers and interests that are driving change or keeping the status quo.
This knowledge can help determine avenues and opportunities for change, such as realistic action, lobbying and policy entrepreneurship.
DELiVER Meeting, Ashden Awards, Wednesday 5th May 2010
Example – Mali Jatropha Electrification
Jatropha producers’ co-
op (CPP)Input supply (seeds,
plants) (MFC)
Generation & sales of electricity
(ACCESS)
Social market (health centre,
school)
Potential agriculture market (fertiliser)
Enabling Environment
Supporting services
External Funding for SHGW/FAC
THigh World
Energy Prices
Tax Exemption
Market Chain Actors and linkages
Accounting support (MFC)
Training on jatropha cultivation (MFC)
Equipment(Dutch power
plant, local press)
Contractual arrangements (MFC)
Technical support(MFC and FF)
Subsidies on Capital
Costs
Supportive regulation and
local authorities
Conducive National Energy
Policy
Farmers(326)
Residential market (247)
Businesses (e.g. battery chargers) Jatropha primary
producers Co-ops (CVPPs) (33)
DELiVER Meeting, Ashden Awards, Wednesday 5th May 2010
Main Enabling Environment Factors
PA’s experience has shown the benefit of identifying the following Enabling Environmental factors:
1] Market Demand:i.e. price, quantity, quality and timeliness of energy suppliesrequired by energy users
2] Transformation Activities:i.e. cost of producing, processing, storing and moving energy
3] Transaction Activities:i.e. costs associated with energy delivery – contracting, securing finance, legal recognition, quality assurance.
DELiVER Meeting, Ashden Awards, Wednesday 5th May 2010
Main Enabling Environment Factors
Enabling Environment
Market Actors
Supporting Services
Tax & Tariff Regime
CulturalIssues
Financial Access
Business RegulationLand Rights
Official Corruption Trade Standards
ConsumerTrends
Quality Assurance Institutions
Infrastructure
MarketDemand
TransformationActivities
TransactionActivities
DELiVER Meeting, Ashden Awards, Wednesday 5th May 2010
Important Energy Enabling Environments
Energy Initiative Corresponding Required Enabling Environment
Public Building / Service
(e.g. public owned utility)
Functioning public services
Household Energy
(e.g. household solar panel installed)
Respected Land Tenure system
Private Enterprise
(e.g. companies selling improved cook stoves)
Existence of private enterprise culture
Decentralised System Community cohesion
Centralised System Available and functioning infrastructure
Commodity Markets Adequate trading standards
DELiVER Meeting, Ashden Awards, Wednesday 5th May 2010
Energy Equipment Ownership
Corresponding Enabling Environment
Government - Corruption not endemic
- Functioning systems
Energy Company - Private enterprise culture exists
- Investment market exists
Community - Adequate community cohesion
Individuals - Low risk of theft
- Access to Capital
Important Energy Enabling Environments
DELiVER Meeting, Ashden Awards, Wednesday 5th May 2010
FAO-PISCES Energy Case Study Examples
Common factors found in enabling environment:
1] Positive
a. World energy prices
b. Tax exemptions and government incentives
c. Supportive government policy and legislation
d. Consumer demand
2] Negative
a. Lack of financing
b. Lack of infrastructure, standards and regulations
c. Requirement for land ownership
DELiVER Meeting, Ashden Awards, Wednesday 5th May 2010
FAO-PISCES Energy Case Study Examples
DELiVER Meeting, Ashden Awards, Wednesday 5th May 2010
Further Work?
Develop a comprehensive list of Energy Enabling Environments factors that relate to energy access for the poor
Develop strategies for improving the Enabling Environment to support the increase of energy access for the poor rather than stifle it
Which Enabling Environments are the priorities for change? Influencing policy, financial environment, training?
DELiVER Meeting, Ashden Awards, Wednesday 5th May 2010
Thank you!
www.practicalaction.org
www.practicalactionconsulting.org
