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Integrated Electrification Pathways for Universal Access to Electricity: a Primer

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Integrated Electrification Pathways for Universal Access to Electricity: a Primer Integrated Electrification Pathways for Universal Access to Electricity: A Primer May 2019 Table of contents 5 Introduction 7 Key Features of Integrated Electrification Pathways 11 Planning Process for Integrated Electrification Pathways 17 Summary 18 Further Resources 20 Bibliography 23 Copyright and Disclaimer Introduction t the current pace of electrification, the independently of one another rather than de- world is not on track to achieve the ambi- signed as complementary solutions that form part tions of Sustainable Development Goal of a cohesive vision for delivering universal access. 7A (SDG 7): to ensure access to affordable, reliable, A lack of clear electrification plans from govern- sustainable and modern energy for all. According ments and complementary policy and regulation to the Tracking SDG7: The Energy Progress Re- to facilitate deployment of multiple energy access port 2019, access to electricity is growing, but not technologies has resulted in fragmented solutions fast enough: 150 million people gained access to and in many cases stagnated progress. This cre- electricity between 2016 and 2017, however that ates a major challenge in addressing the electrici- still leaves 840 million people without access, ty access gap at scale. down from just under a billion in 2016 and 1.2 billion in 2010. And 573 million of those people In recent years, many policymakers, industry ex- – 1 out of 2 – are in Sub-Saharan Africa. While ecutives, financiers and others in the international it is increasingly acknowledged that the energy energy community have identified integrated ap- access gap will be met with a mix of off-grid, mini- proaches to energy policy planning as a means grid and on-grid electrification solutions, findings of leveraging all electrification solutions, be they from Sustainable Energy for All’s (SEforALL) En- via the centralized grid, mini-grid or off-grid solu- ergizing Finance report series indicate that only tions. Countries such as Ethiopia, India, Kenya, around 1% of global finance for energy access Myanmar, Nepal and Togo (among others) are flows to off-grid and mini-grid solutions. considering their electrification strategies with an eye to taking advantage of all available technolo- Uneven progress on universal electrification stands gies and leveraging the private sector’s expertise in stark contrast to continuing renewable energy to meet SDG 7. In many cases, an integrated ap- technology developments and decreasing costs as proach is necessary to account for geography or well as to the increasingly attractive business case population dispersion that makes centralized grid for decentralized solutions to meet the electric- extension difficult or prohibitively costly. While ity needs of rural and remote communities. While some countries are pioneering an integrated many governments have embraced multiple tech- approach, there is a lack of clarity among many nologies to electrify their citizens, centralized grid, others as to exactly what it means to develop an mini-grid and off-grid solutions are often deployed integrated pathway to universal electrification. 5 SEforALL seeks to bring clarity to a full-systems approach to electricity sector planning. By listening approach to electrification planning, especially its intently to policymakers, analyzing success stories, relationship to social and productive uses of elec- consulting experts and seeking feedback from a tricity. This report defines “Integrated Electrification wide range of private sector stakeholders, SEforALL Pathways” (IEPs) that incorporate these important has compiled this Integrated Electrification Path- perspectives and lays out key steps to guide pol- ways for Universal Access to Electricity Primer to icymakers in creating strategies and developing bring clarity to the sector and de-mystify integrated policies and programs to support a comprehensive electrification. A set of inclusive planning What is an approaches and policy measures Integrated that support using grid, mini-grid and off-grid technologies to Electrification provide electricity and the associated energy services Pathway? necessary to meet human needs and contribute to sustainable development. 6 socio-economic benefits arising from access will Key Features not be realized unless electrification provides reli- able, affordable energy services that are targeted of Integrated towards increasing incomes and improving health, education and other outcomes that enhance social Electrification wellbeing. Achieving these benefits requires an understanding of where both the needs and the Pathways potential for economic development are greatest. That understanding is gained through bottom-up consultations with consumers, local government eyond the definition on the previous page, agencies, civil society organizations, entrepre- it is useful to consider the four key fea- neurs, and investors, all of which can help identi- tures that characterize IEPs. While these fy electricity access priorities among households, Bare ideal features, it is unlikely that any IEP in use community services and businesses. Consider- or currently in development successfully captures ation must also be given to the tier (see below) of every aspect. However, each feature identified access required since different needs may be more below has been used with success in countries or appropriately met with different technologies and regions around the world and identifying these delivery models. features at the beginning of any planning process can create an environment conducive to success. Technological and business model innovation means there are now multiple pathways to provid- 1) IEPs place access to electricity in the ing electricity access. Decentralized solutions in par- context of sustainable development and ticular can offer valuable electricity services to popu- human needs lations who may not otherwise gain access for years if not decades. Households may benefit from basic A lack of access to electricity is strongly associated electricity services while schools, hospitals, indus- with poverty and reduced opportunity. However, try and other activities require significantly greater 7 levels of service. It is also now widely understood This nuanced supply-side picture has been cap- that while development and expansion of central- tured well in the World Bank’s Multi-Tier Frame- ized electricity grids provide access to millions of work for Measuring Energy Access (MTF), which additional people each year, grid connection in it- describes access in terms of peak power capac- self does not guarantee reliable electricity supply, ity, duration of availability, reliability and other with millions of grid-connected consumers lacking attributes. (See Figure 1) reliable and affordable access to electricity. Figure 1 Multi-tier Matrix for Measuring Access to Household Electricity Supply 0 1 2 3 5 Power Min 3 W Min 50 W Min 200 W Min 800 W Min 2 kW capacity ratings (in W or daily Wh) Min 12 Wh Min 200 Wh Min 1.0 kWh Min 3.4 kWh Min 8.2 kWh 1. Peak Capacity Electrical lighting, air, OR Lighting of circulation, Services 1,000 lmhr/day television, and phone charging are possible Hours Min 4 hrs Min 4 hrs Min 8 hrs Min 16 hrs Min 23 hrs per day 2. Availability (Duration) Hours per Min 1 hrs Min 2 hrs Min 3 hrs Min 4 hrs Min 4 hrs evening AB Max 3 Max 14 disruptions 3. Reliability disruptions per week of per week total duration <2hrs Adapted from the World Bank/ESMAP, Beyond Connections: Energy Access Redefined, 2015. The MTF mapping of energy supply to energy services assists in understanding the types of services a given electricity access tier can provide. (See Figure 2) Figure 2 Multi-tier Matrix for Measuring Access to Household Electricity Services 0 1 2 3 5 General lighting Task lighting AND phone Tier 2 AND any Tier 3 AND any Tier 2 AND any Tier AND phone charging AND medium-power high-power very high-power criteria charging television AND appliances appliances appliances fan (if needed) 8 IEPs result from an analysis of the development and make higher tiers of access more affordable. needs of unelectrified populations and consider It is critical that IEPs lay out clear frameworks for the level of service that may be best suited to interconnection where appropriate and serve as meet their needs, and in consideration of their supplemental distributed generation if and when ability to pay. This analysis is based on cross-sec- a central grid arrives, thereby guaranteeing long toral consultation and the availability of appro- term return on investment and making clean, priate technologies and delivery models. decentralized generation a no-regrets solution. 2) IEPs consider all technological The availability of cost-effective, low carbon elec- approaches and delivery models tricity access solutions creates new opportunities for providing essential services and represents a Achieving universal electrification requires a new paradigm for electrification planning. How- complementary mix of approaches: the tradi- ever, this new paradigm must be incorporated tional approach of expanding centralized elec- into existing electrification plans to broaden their tricity grids and their associated transmission scope. The ESMAP Regulatory Indicators for Sus- and distribution networks and other, decentral- tainable Energy (RISE) database shows that 35 of ized solutions that encompass mini-grids, solar the 54 countries with the largest energy access home systems, and solar lighting kits, usually deficits
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