Increasing access to energy services in rural areas - REEEP ...

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SUSTAINABLE ENERGY REGULATION AND POLICYMAKING TRAINING MANUAL page 10.100 SUSTAINABLE ENERGY REGULATION AND POLICYMAKING FOR AFRICA Basic Energy Needs • Energy is not about “bringing in the power grid” • People don’t want energy “per se” but the range of services it provides • Benefits deriving from energy services: – Contributing to increased production and reducing “sweat energy” – Contribution to health and human capital (pumping water or provision of lighting to health facilities and schools) – “Security” (via street lighting, back-up energy supplies, or pumped water reducing risks from drought) – “Inclusion” in the modern economy (via communications media) Module 10 SUSTAINABLE ENERGY REGULATION AND POLICYMAKING FOR AFRICA Increasing Access in Rural Areas • The total (higher) costs of final “useful energy” from modern energy services will have to be accepted by rural people • This supports the case of modern energy services for productive uses • Traditional and modern energy services will have to exist side-by-side 1. Financial—Support to RESCOs 2. Technical—R&D 3. Organizational—Community development Module 10
MODULE 10: INCREASING ACCESS TO ENERGY SERVICES IN RURAL AREAS page 10.101 SUSTAINABLE ENERGY REGULATION AND POLICYMAKING FOR AFRICA Smart Subsidies • To lower the initial costs (technical advice, capital investment) rather than lowering the operating costs • Technologically neutral • Include for end-use investments, particularly to encourage pro-poor productive uses • “Cross subsidies” within the project to enable transfer from richer sections of the community, and commercial users to marginal connections Module 10 SUSTAINABLE ENERGY REGULATION AND POLICYMAKING FOR AFRICA What is a RESCO • “Rural Energy Service Company” – Private company – NGO – Government body – Entrepreneur – Peoples cooperative – Public-private partnership – Utility • A RESCO, in whatever form, is a business entity
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Increasing access to energy services in rural areas - REEEP ...

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