Judy Siegel

Village Power Meeting

November 9, 2004

AgendaAgenda

GVEP OverviewGVEP Overview Activities and AccomplishmentsActivities and Accomplishments Lessons Learned to DateLessons Learned to Date

The World At NightThe World At Night

Source: C Mayhew and R Simmon (NASA/GSFC)Source: C Mayhew and R Simmon (NASA/GSFC)

The Problem is More Than The Problem is More Than ElectricityElectricity

• Half the World Relies on Half the World Relies on traditional biomass for traditional biomass for heating/cooking needs.heating/cooking needs.

• Women in some LDCs Women in some LDCs spend 1/3 of their spend 1/3 of their productive life collecting & productive life collecting & transporting woodtransporting wood

• Indoor air pollution kills Indoor air pollution kills more women/children than more women/children than malaria and tuberculosismalaria and tuberculosis..

• Deforestation causing Deforestation causing environmental problemsenvironmental problems

GVEP OverviewGVEP Overview Launch: Launch: August ’02 at WSSDAugust ’02 at WSSD GoalGoal: : Increase energy access to Increase energy access to

those unserved/underserved while those unserved/underserved while reducing povertyreducing poverty

ObjectivesObjectives Catalyze country commitments Catalyze country commitments

to energy-poverty reductionto energy-poverty reduction Bridge financing gap between Bridge financing gap between

investors, suppliers and usersinvestors, suppliers and users Facilitate policy and regulatory Facilitate policy and regulatory

frameworks for scale-upframeworks for scale-up Serve as a marketplace for Serve as a marketplace for

lessons learned, best practiceslessons learned, best practices Create/sustain coordination Create/sustain coordination

mechanisms mechanisms

Expected OutcomesExpected Outcomes

GVEP 10 Year Program Outcomes:GVEP 10 Year Program Outcomes: Energy-poverty reduction programs in Energy-poverty reduction programs in 30 30

countriescountries Increase energy access to an incremental Increase energy access to an incremental 400 400

million peoplemillion people Provision of energy services to an incremental Provision of energy services to an incremental

50,000 communities50,000 communities Cadre of Cadre of trained entrepreneurstrained entrepreneurs Quantifiable Quantifiable improvement in quality of lifeimprovement in quality of life by by

beneficiariesbeneficiaries Contribution to Contribution to MDGsMDGs

ExistingRural

Energy Projects

GVEP Services = Multiplier•Capitalizes on successes•Bring new players to the table•Makes knowledge available•Disseminates models for • effective energy delivery•Pools technical resources•Bridges the financing gap •Links governments, donors, private sector, financiers & NGOs toward common goal•Strengthens local community • organizations•Aggregates/accounts for results•Designs new instruments, tools, • toolkits

GVEP Outcomes-2012 •Increased energy access>30 countries•Incremental energy services to 300M people•Access to >50,000 communities •Cadre of trained energy service providers•Increases in quality of life, poverty reduction

Valued-added From the Valued-added From the PartnershipPartnership

The GVEP ApproachThe GVEP Approach

Technology neutral (clean sources to the Technology neutral (clean sources to the extent possible)extent possible)

Multi-application: electricity, heating, Multi-application: electricity, heating, cooking, lighting, cooling, transport, etc. cooking, lighting, cooling, transport, etc. (i.e. not just power)(i.e. not just power)

Multi-use: Emphasis on productive use Multi-use: Emphasis on productive use & livelihoods; also consumptive & social & livelihoods; also consumptive & social

Multi-stakeholder: private, public, NGOMulti-stakeholder: private, public, NGO Multi-sector: energy, ag, water, health, Multi-sector: energy, ag, water, health,

education, SMEs, etceducation, SMEs, etc Market principlesMarket principles

GVEP: Activities and GVEP: Activities and

Accomplishments to DateAccomplishments to Date

GVEP: A 3-Phased ProcessGVEP: A 3-Phased Process

FROM TALKFROM TALK

TO DESIGNTO DESIGN

TO ACTIONTO ACTION

Phase 0: Lead up to the Launch-2001/2

Phase 1: Program Planning, Development, Initiation- 2003/4

Phase 2: Implementation-

2005 and Beyond

GVEP GovernanceGVEP Governance

13-Member Partner Board

Technical Secretariat

>428 GVEP

Partners

GVEP Board and SecretariatGVEP Board and Secretariat

GVEP BoardGVEP Board P. Hassing, ChairP. Hassing, Chair H. HandeH. Hande S. KarekeziS. Karekezi S. McDadeS. McDade C. NicholsonC. Nicholson S. OparaochaS. Oparaocha R. PolesticoR. Polestico G. RamachandranG. Ramachandran G. ThompsonG. Thompson F. TugwellF. Tugwell N. WamukonyaN. Wamukonya J. Saghir, WBJ. Saghir, WB Andrew Scott, ITDGAndrew Scott, ITDG

GVEP SecretariatGVEP Secretariat A. Brew-Hammond, ManagerA. Brew-Hammond, Manager D. Jones/T. Sanchez, Country D. Jones/T. Sanchez, Country

ActionsActions E. Morris, Capacity DevelopmentE. Morris, Capacity Development J. Siegel, Financing FacilitationJ. Siegel, Financing Facilitation TBD, Knowledge ManagementTBD, Knowledge Management B. Peacock, M&EB. Peacock, M&E Admin Support (1-2 staff)Admin Support (1-2 staff) Resource Persons Resource Persons

P. Flanagan, USAIDP. Flanagan, USAID D. Lallement, ESMAPD. Lallement, ESMAP A. Yager, UNDPA. Yager, UNDP

GVEP Partner Organizations GVEP Partner Organizations (428 Partners as of 9/04)(428 Partners as of 9/04)

Private31%

Other3%

Multilateral 4%

Independent Contractor

6%

Government12%

NGO44%

Asia/Pacific29%

Global13%

Latin America & Caribbean

12%

Europe & Central Asia

13%

North America (Except US)

10%

Africa/Middle East23%

Partners by Type Partners by Region

Multi-sectoral 22%

Energy15%

Environment11%

Education7%

Water7%

Agriculture7%

Small Business7%

Infrastructure5%

Health4%

Telecommunications3% Financial/Banking

1%

Rural Development11%

Partners by Sector

GVEP Members GVEP Members (1015 individuals as of 9/04)(1015 individuals as of 9/04)

GVEP Service LinesGVEP Service Lines

Country ActionsCountry Actions Capacity DevelopmentCapacity Development Finance FacilitationFinance Facilitation Knowledge ManagementKnowledge Management Results MonitoringResults Monitoring

Activities and Accomplishments: Activities and Accomplishments: Country ActionsCountry Actions

4 Regional Energy-Poverty Workshops 4 Regional Energy-Poverty Workshops 500 participants, 30countries: 500 participants, 30countries:

Africa/LACAfrica/LAC Draft energy-poverty plansDraft energy-poverty plans Follow-on country plans/programs in Follow-on country plans/programs in

development in 20 countries (ESMAP, development in 20 countries (ESMAP, UNDP,USAID support)UNDP,USAID support)

2 country action plans completed 2 country action plans completed Investment programs underwayInvestment programs underway

Some countries moving forwardSome countries moving forwardw/out regional workshops (S. Africa)w/out regional workshops (S. Africa)

Launching GAP FundLaunching GAP Fund Links to EUEI/REEEP/GNESD/LPG Links to EUEI/REEEP/GNESD/LPG Asia regional activity recently Asia regional activity recently

initiated lead by WB/ASTAEinitiated lead by WB/ASTAERegional Workshop:Douala Cameroon

Action Planning- Country Action Planning- Country SupportSupport

AfricaAfrica Burkina FasoBurkina Faso Cameroon Cameroon Ghana Ghana Kenya Kenya Mali Mali Senegal Senegal So. Africa So. Africa Tanzania Tanzania Uganda Uganda Zambia Zambia

LACLAC Bolivia Bolivia Brazil Brazil Dom. Rep. Dom. Rep. Guatemala Guatemala Honduras Honduras Mexico Mexico

AsiaAsia Current: India, Sri Lanka Current: India, Sri Lanka Initiating: Cambodia, Initiating: Cambodia,

China, Indonesia, Laos, China, Indonesia, Laos, Philippines, PNG, Philippines, PNG, VietnamVietnam

GVEP Country Activities- GVEP Country Activities- BrazilBrazil GVEP RoleGVEP Role: Input on implementation : Input on implementation

of off-grid systems into National of off-grid systems into National Universal Electricity Access Program Universal Electricity Access Program & Zero Hunger Program& Zero Hunger Program

Hired GVEP staff; mobilized natl, Hired GVEP staff; mobilized natl, state, local stakeholdersstate, local stakeholders

GVEP ActivitiesGVEP Activities: Village Energy : Village Energy Demand assessments, supply Demand assessments, supply options, pilot business models, options, pilot business models, beyond-the-meter financing beyond-the-meter financing approach, implem strategyapproach, implem strategy

3 stages:3 stages: (1) action plan (1) action plan development (9/04); piloting in 1200 development (9/04); piloting in 1200 communities (05); full scale communities (05); full scale implementaton (05 and beyond)implementaton (05 and beyond)

BeneficiariesBeneficiaries: 18M people : 18M people PartnersPartners: MME, USAID, ESMAP, WB, : MME, USAID, ESMAP, WB,

UNDPUNDP

GVEP Country Activity-GVEP Country Activity-GuatemalaGuatemala

2.6 M people lack power, most rural2.6 M people lack power, most rural GVEP RoleGVEP Role: Increase energy in Franja : Increase energy in Franja

Transversal del Norte for econ/social Transversal del Norte for econ/social development, one of poorest most development, one of poorest most isolated and excluded eco-regions isolated and excluded eco-regions

Focus:Focus: renewable energy for renewable energy for productive/social uses productive/social uses

BeneficiariesBeneficiaries: 97 communities; : 97 communities; replicable throughout countryreplicable throughout country

ActivitiesActivities: Roadmap of energy to : Roadmap of energy to other sectors (health, education, ag, other sectors (health, education, ag, infrastructure); support for consumer infrastructure); support for consumer credit; entrepreneur training; policy credit; entrepreneur training; policy support; multi-sector project support; multi-sector project portfolio; investment leveraging; RE portfolio; investment leveraging; RE info and promotion centerinfo and promotion center

Status: Phase I action plan complete, Status: Phase I action plan complete, seeking funding for Phase II project seeking funding for Phase II project implementationimplementation

PartnersPartners: MEM, UNDP, USAID, ESMAP: MEM, UNDP, USAID, ESMAP

GVEP Country Activities - GVEP Country Activities - TanzaniaTanzania

Overview: 34M people, <10% with power; 98% rural people rely on biomass, kerosene, batteries

GVEP Role: Build MEM capacity to develop Rural Energy Agency and Fund

Activities: Develop methodology for project planning/integration, scope flagship projects (modern bio, bagasse co-gen, mini hydro), strengthen M&E systems

GVEP Partners: MEM, UNDP, WB, USAID, SIDA

Capacity DevelopmentCapacity DevelopmentActivityActivity AccomplishmentsAccomplishments

Village Power Sustainability Village Power Sustainability WorkshopWorkshop

•China incorporated O&M principles into the China incorporated O&M principles into the Brightness & Township Electrification ProgramBrightness & Township Electrification Program

Pre-Investment WorkshopPre-Investment Workshop •Helped to bridge gap between financiers & Helped to bridge gap between financiers & entrepreneursentrepreneurs•Seeded financing facilitation activitiesSeeded financing facilitation activities

South Asia Practitioner South Asia Practitioner WorkshopWorkshop

•Forum for info exchange at practitioner levelForum for info exchange at practitioner level•Best practices project profiles & case studiesBest practices project profiles & case studies•S Asia practitioner network for continued dialogueS Asia practitioner network for continued dialogue•Platform for Asia Regional ActivitiesPlatform for Asia Regional Activities

Consumer Lending & Micro Consumer Lending & Micro Finance WorkshopFinance Workshop

•Improved understanding of energy by MFIsImproved understanding of energy by MFIs•Improved understanding of MFIs by energy Improved understanding of MFIs by energy providersproviders•MFIs committed to offering energy product linesMFIs committed to offering energy product lines•USAID funding for 3-5 MFI programs in Africa in USAID funding for 3-5 MFI programs in Africa in ‘05‘05

GVEP Facilitator WorkshopsGVEP Facilitator Workshops

- LAC prior to Bolivia- LAC prior to Bolivia

- Africa planned for 11/04- Africa planned for 11/04

•7 draft action plans at LAC regional workshop7 draft action plans at LAC regional workshop•2 LAC plans complete, 4 in development2 LAC plans complete, 4 in development•Action programs completed in 6 Africa countries Action programs completed in 6 Africa countries ’05 (Ghana, S. Africa, Tanzania, Kenya, Uganda, ’05 (Ghana, S. Africa, Tanzania, Kenya, Uganda, Zambia)Zambia)

Inventory of Capacity Inventory of Capacity Development Tools and Development Tools and ServicesServices

•Information for partners on capacity developmentInformation for partners on capacity development

Financing FacilitationFinancing FacilitationActivitiesActivities AccomplishmentsAccomplishments

Fund Raising/Fund Raising/

LeveragingLeveraging

$400K grant from UNF/UNDP for local FI support; ‘05 $400K grant from UNF/UNDP for local FI support; ‘05 follow onfollow onLeveraging donor funding for energy-poverty programsLeveraging donor funding for energy-poverty programs

WB:>$600 M in investments; >$1B plannedWB:>$600 M in investments; >$1B plannedUSAID: $47 M in 25 countries, 9M people servedUSAID: $47 M in 25 countries, 9M people served

Executive Roundtable/Follow up to Non-Traditional Donors Executive Roundtable/Follow up to Non-Traditional Donors Working with CDCF/Global 3e/e7 to support partner Working with CDCF/Global 3e/e7 to support partner projectsprojects

ProjectProject

ClearinghouseClearinghouse

In development to link GVEP partner projects to potential In development to link GVEP partner projects to potential fundersfunders

Local FI SupportLocal FI Support FI training programs being piloted (Brazil,Tanzania);Asia FI training programs being piloted (Brazil,Tanzania);Asia planned planned Risk mitigation facilities in development (Brazil, Asia Risk mitigation facilities in development (Brazil, Asia w/GEF)w/GEF)Expanding alliances with key strategic partners (Global Expanding alliances with key strategic partners (Global Compact, WBI, Citibank Foundation, etc)Compact, WBI, Citibank Foundation, etc)

Financing Financing Sources & Sources & ServicesServices

Expanding BASE Financing Portal to LDC FIsExpanding BASE Financing Portal to LDC FIsDocumented financing sources, toolkits, reports on Documented financing sources, toolkits, reports on websitewebsite

Links to Other Links to Other PartnershipsPartnerships

Provided input on JREC Patient Capital Fund designProvided input on JREC Patient Capital Fund designParticipate in EUEI/REEEP Financing CommitteesParticipate in EUEI/REEEP Financing Committees

Knowledge ManagementKnowledge ManagementActivities Activities AccomplishmentsAccomplishments

Information Information Sharing Sharing

ActivitiesActivities

WebsiteWebsiteIncludes project spacesIncludes project spaces

Bi-monthly NewsletterBi-monthly NewsletterQuarterly Partner UpdatesQuarterly Partner UpdatesAnnual Report 2003; 2004 in preparationAnnual Report 2003; 2004 in preparationParticipation in GNSED Steering CommitteeParticipation in GNSED Steering Committee

Knowledge Knowledge GenerationGeneration

Case studies/project profilesCase studies/project profilesKM/Communication Strategies in development KM/Communication Strategies in development

Emphasis on non-web outreachEmphasis on non-web outreachLinks to country-level activitiesLinks to country-level activities

Rapid Rapid Response Response FacilityFacility

Quick response to partner requestsQuick response to partner requests

Monitoring and EvaluationMonitoring and EvaluationActivitiesActivities AccomplishmentsAccomplishments

Project LevelProject Level Under EdF leadership:Under EdF leadership:M&E Working Group EstablishedM&E Working Group EstablishedWeb site establishedWeb site establishedPrepared review of methodologies for Prepared review of methodologies for developing project-level indicatorsdeveloping project-level indicatorsPilot activities underway in 8 countries Pilot activities underway in 8 countries to test methods for measuring to test methods for measuring development impact of energy service development impact of energy service projectsprojects

National National Development Impact Development Impact LevelLevel

No significant M&E activities to dateNo significant M&E activities to date

Partnership LevelPartnership Level Partner Survey Drafted; to be Partner Survey Drafted; to be distributed 11/04distributed 11/04First Biennial Partner Meeting, Fall First Biennial Partner Meeting, Fall 20052005

GVEP: Lessons Learned to GVEP: Lessons Learned to DateDate

Lessons Learned to Date: Lessons Learned to Date: Country ActivitiesCountry Activities

Linking energy to cross sector applications not being done Linking energy to cross sector applications not being done wellwell

17 of 30 countries participating in regional workshops 17 of 30 countries participating in regional workshops incorporated lessons learned right awayincorporated lessons learned right away

National level activities generally require GVEP supportNational level activities generally require GVEP support Pilots are important: demonstrate new models, resultsPilots are important: demonstrate new models, results Activities should link to follow on funding/investment Activities should link to follow on funding/investment No one size fits allNo one size fits all We are making a difference: Governments, NGOs, private We are making a difference: Governments, NGOs, private

firms, donors are changing the way they are thinking and firms, donors are changing the way they are thinking and delivering energy servicesdelivering energy services

Links to policy and regulatory reforms key to scale upLinks to policy and regulatory reforms key to scale up Programs take time to develop; yet people want results Programs take time to develop; yet people want results

quicklyquickly

Lessons Learned to Date: Lessons Learned to Date: Financing and Capacity Financing and Capacity

DevelopmentDevelopment There is a need for financing support across the spectrum There is a need for financing support across the spectrum

Pre-feasibility, feasibility, investment, insurance; must be linkedPre-feasibility, feasibility, investment, insurance; must be linked Global funding mechanisms for RE services not effectiveGlobal funding mechanisms for RE services not effective Local liquidities are key (local currencies, management, operation)Local liquidities are key (local currencies, management, operation) Call for risk sharing and risk mitigation instrumentsCall for risk sharing and risk mitigation instruments Carbon finance can play a roleCarbon finance can play a role

Microfinance institutions are effective credit delivery Microfinance institutions are effective credit delivery mechanisms in rural areas (e.g., women)mechanisms in rural areas (e.g., women) Not focused on energy to dateNot focused on energy to date Recognition that energy offers a new, profitable product line Recognition that energy offers a new, profitable product line Energy products must be demand driven; link to income generationEnergy products must be demand driven; link to income generation Cases exist where MFI’s support energy Cases exist where MFI’s support energy

Markets need to grow on their own strengths not on subsidies Markets need to grow on their own strengths not on subsidies However “smart” subsidies may be necessary/appropriateHowever “smart” subsidies may be necessary/appropriate

GVEP: Some Lessons Learned To GVEP: Some Lessons Learned To Date (Cont’d)Date (Cont’d)

Knowledge ManagementKnowledge Management Knowledge Gap exists for all players Knowledge Gap exists for all players Outreach needed to reach non-web partners/institutionsOutreach needed to reach non-web partners/institutions

Monitoring and EvaluationMonitoring and Evaluation M&E is often overlooked and under-fundedM&E is often overlooked and under-funded Substantial M&E experience exists across partners, yet not Substantial M&E experience exists across partners, yet not

shared, not coordinated, not standardizedshared, not coordinated, not standardized Cross Cutting: Public-Private Partnerships are keyCross Cutting: Public-Private Partnerships are key

• Governments/IFIs: Create enabling environment via Governments/IFIs: Create enabling environment via policies/regs, credit access (not delivery)policies/regs, credit access (not delivery)

• Bilateral Donors: Support for technical assistance, Training, Bilateral Donors: Support for technical assistance, Training, Capacity Building, Knowledge SharingCapacity Building, Knowledge Sharing

• MDBs: Financing and risk sharingMDBs: Financing and risk sharing• Private Sector: Marketing, sales, after service sales, quality Private Sector: Marketing, sales, after service sales, quality

control, financing/creditcontrol, financing/credit• Financial Institutions: InvestmentFinancial Institutions: Investment• Consumers: Provide demand and pay the billsConsumers: Provide demand and pay the bills

GVEP ScorecardGVEP Scorecard10 Year Outcomes10 Year Outcomes Progress to DateProgress to Date30 Countries with 30 Countries with Energy-Poverty Energy-Poverty ProgramsPrograms

Programs in development in Programs in development in 13 African Countries, 7 LAC 13 African Countries, 7 LAC nationsnationsBeginning work in Asia (8 Beginning work in Asia (8 countries)countries)Leveraging investment by Leveraging investment by multilaterals/bilateralsmultilaterals/bilaterals

Increase modern energy Increase modern energy services to 400M peopleservices to 400M people

Programs planned targeting Programs planned targeting

> 50 M people > 50 M people

50,000 communities 50,000 communities servedserved

Programs planned for at Programs planned for at least 2,000 communitiesleast 2,000 communities

Trained entrepreneursTrained entrepreneurs Over 100 to dateOver 100 to date

GVEP and APECGVEP and APEC

Potential Areas for CollaborationPotential Areas for Collaboration Post/Share information on GVEP websitePost/Share information on GVEP website Co-sponsor projects/activitiesCo-sponsor projects/activities Link to GVEP Asia Regional Workshop Link to GVEP Asia Regional Workshop

and Country-level activitiesand Country-level activities Explore areas for future collaborationExplore areas for future collaboration

To Join the Partnership: To Join the Partnership: Sign up and Sign On Sign up and Sign On

(www.gvep.org)(www.gvep.org)

GVEP Statement of Principles

• 10-year “implementation-based” program• Increase energy access and reduce poverty

• Advance market principles: reform, multiple providers & funders • Consider multiple technologies, sectors & delivery approaches

• Coordinate with related activities (national, local) & other partnerships• Agree to report on results

Thank you!Thank you!www.gvep.orgwww.gvep.org