Access to More: Creating Energy Choices for Refugees a Report About Collaborative Approaches to Providing Energy in Displacement
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Report July 2020 Access to more: creating energy choices for refugees A report about collaborative approaches to providing energy in displacement. SHELL, DALBERG AND VIVID ECONOMICS About 2 About Shell International Energy has been Shell’s business for over 125 years. Over the decades, the Shell group of companies has provided reliable supplies of oil, natural gas and refined fuels around the world, helping to drive economic development. Today, Shell views its contribution to universal access to energy as fundamental to its core purpose: to provide more and cleaner energy. Globally, around 860 million people still lack access to electricity and hundreds of millions more have an unreliable supply. We want to help people gain access to the benefits of electricity and – in line with society’s expectations – Dalberg Advisors Vivid Economics from cleaner sources. That’s why, in 2018, Shell announced its commercial ambition Dalberg Advisors is a strategic Vivid Economics is a leading to deliver a reliable electricity supply to advisory firm combining the strategic economics consultancy with 100 million people, primarily in Africa and best of private sector strategy global reach. It strives to create lasting Asia, by 2030. skills and rigorous analytical value for our clients, both in government Complementary to this and in capabilities with deep knowledge and the private sector, and for society order to help address one of the and networks across emerging and at large. world’s most pressing societal frontier markets. It has a dedicated Vivid Economics is a premier issues, Shell in 2019 announced the Energy practice to help clients – from consultant in the policy commerce social investment “Enter Energy” governments to multinationals and interface and resource- and project to support energy access financial institutions – increase the supply environment-intensive sectors, where for refugees and displaced people of economically viable, environmentally it advises on the most critical and and their host communities. In close sustainable, socially equitable energy. complex policy and commercial collaboration with partners from the Its expertise spans designing evidence- questions facing clients around the humanitarian and private sector, Shell based strategies for entering emerging world. The success it brings to its clients will work to equip displaced people & markets, developing business models reflects a strong partnership culture, host communities, energy enterprises and for doing business with low-income solid foundation of skills and analytical humanitarian actors with the relevant data, consumers, policy analysis, and assets, and close cooperation with a skills and financial mechanisms to build innovative financing to find energy large network of contacts across key local energy markets. delivery models. organizations. Access to more: creating energy choices for refugees Acknowledgements 3 Acknowledgements This report was commissioned by (Vivid Economics - Director), Kendrick Shell International and developed in Hung (Dalberg – Project Manager), and partnership with Dalberg Advisors Aditi Sahni (Vivid Economics - Project and Vivid Economics. It draws on input Manager). The team was supported by a provided by a wide range of stakeholders, dedicated team of writers, interviewers, including off-grid energy enterprises, and researchers. technical experts, policymakers, Shell International would like humanitarian aid organizations, to extend special thanks to the development partners, researchers, and experts who sat on the advisory displaced persons. We thank everyone panel for this report including: who contributed to this report. Mark Gibson (UNITAR/GPA), Luc Severi The report was prepared by (SEforALL), Cecilia Ragazzi (Mercy an independent advisory team Corps), Nicole Bouris (IFC - Lighting from Dalberg Advisors and Vivid Global), Charlotte Heffer (D. Light/ Economics. The team was led by GOGLA), Kate Montgomery (Acumen) Gaurav Gupta (Dalberg - Partner), and Katrina Pielli (former USAid/Smart Jyothi Vynatheya Oberoi (Dalberg - Communities Coalition). Associate Partner), Alex Kazaglis Shell is grateful for the advice and input received from members of the following organisations. Access to more: creating energy choices for refugees Foreword 4 Foreword: Why we need to share, be determined and collaborate to jointly achieve more I had my first experience need. Governments and humanitarian organisations are having difficulty with a refugee camp in providing this energy, because the number the early nineties when of displaced people across the world is I visited my wife (at the growing, crises are taking longer to time still my girlfriend) solve and the energy needs of people in camps and settlements are becoming who was working in more diverse. This is why governments Ghana on food supply and the humanitarian sector are to camps that housed increasingly asking businesses to help develop energy markets and give people refugees from Togo. in and around settlements the possibility to choose the (renewable) energy they Maarten Wetselaar, Executive I will never forget the hunger and want and need. Committee Member Royal Dutch desperation in that camp. I saw that This report, a collaboration by Shell — Integrated Gas and the life of a refugee is a life with many of Dalberg, Vivid Economics and Shell, New Energies Director its choices taken away. A refugee cannot looks at how these energy markets choose how to live, earn a living, or plan work now, and how they could work for the future. A refugee often does not better in the future. Shell has some even have a choice over whether they experience of providing energy to the can light their homes or cook their food, underserved. We have been helping to because they just don’t have access to the build local energy markets for remote energy they need. communities through our social investment But in that camp, I also saw projects for the last 15 years. And in 2018, great ingenuity, willpower and we launched the ambition to provide humanity. I saw people who wanted reliable energy to 100 million people who to improve their lives. Refugees, but also currently don’t have access to it by 2030. all other displaced people (those forced This is no simple task – and providing to leave their homes but who did not for displaced people is even harder. This cross a border in their search for safety) report gives some guidance on how to and the communities who host them, start: by all those involved sharing our could significantly improve their lives if knowledge, showing our determination they had access to the reliable, clean to succeed and strengthening our and affordable energy they want and collaboration. Access to more: creating energy choices for refugees Foreword 5 Providing energy choices for displaced people is far too complex a challenge for one country, community or company to solve. Energy for All, and the guidance of UNHCR and IOM. Humanitarian and development institutions, NGOs, governments, communities that host camps and settlements and companies that provide local energy access – we all need to work together to remove the obstacles that stand between displaced people and energy choices. First, humanitarian organisations, interviews with people in the Bidi Bidi That brings me to the third step governments and the private camp in Uganda that were done for this we should take. We should adopt a sector should share knowledge. The research show that displaced people who mentality of long-term determination. International Finance Corporation and the were already accustomed to renewable This report confirms that the complexities Moving Energy Initiative, led by Chatham energy in their country of origin, are of the humanitarian system and the House in the UK, for example, have much more willing to spend a bigger part instability of a displaced person’s life published groundbreaking studies that of their budget on cleaner energy than make it difficult for companies to invest. have shown that where there are people, those who have not had that exposure. For entrepreneurs, who hold the key to there is trade. To give just one example, This report also shows the social impact the solution, investment is a long-term Kenya’s Kakuma camp has an estimated that improved access to energy among decision fraught with risk. So, we need 2,000 businesses across various markets displaced people can have: every dollar to find ways to mitigate these risks and within the camp and in its peripheral host spent on better energy access generates enable investments to flow. community, where people spend some between $1.40 and $1.70 in the form Thirty years after my first $56 million a year. So, there is trade in of employment, environmental benefits, experience with a refugee camp, camps, some of which become long-term productivity and time savings. the world still needs to take many homes for many people. But we still need Providing energy choices for steps to improve the lives of refugees to better understand how to support this displaced people is far too complex and displaced people. I hope that basic supply and demand. a challenge for one country, this report can be one of those steps This report doesn’t have all the community or company to solve. This and can start a dialogue about how answers, but hopes to contribute to is why the second step we need to take the private sector can help and play its advancing the knowledge on these is to strengthen our collaboration. Even role. Giving displaced people energy economies and add new insights. this report would not have been possible choices is an opportunity for so many For example, displaced people around without the help of Acumen, the Global people on so many levels. By sharing our the world already spend more than $1.6 Plan of Action for Energy in Displacement, knowledge, showing our determination billion a year to light their homes and GOGLA, The World Bank Group’s and strengthening our collaboration, we cook their food. So, energy markets, Lighting Global, Mercy Corps, the Smart can seize it, for the benefit of those who even if often informal, already exist.