Turyahabwe Byempaka Elsam Project Development Officer-Energy

EAC Regional Strategy on Scaling Up Access to Modern Energy Services

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Outline

• Introduction

• The Strategy

• Steps taken so far

• Next Steps

• Conclusion

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Members Burundi, Kenya, Rwanda, Tanzania & Uganda

The Vision a prosperous, competitive, secure and politically united East Africa.

The Mission to widen and deepen economic, political, social and cultural integration in order to improve the quality of life of the people of East Africa through increased competitiveness, value added production, trade and investment.

INTRODUCTION

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STRUCTURE OF THE COMMUNITY• Three Organs

– The East African Legislative Assembly (EALA)– The East African Court of Justice (EACJ)– The East African Community Secretariat

• Decision making by consensus– Summit of Heads of State– Council of Ministers– Sectoral Councils

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KEY ELEMENTS OF INTEGRATION

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Political Federation

Monetary Union

Common Market

Customs Union fully implemented Customs Union

free movement of people, capital, labour, services and right of establishment and residence

a single currency

complete social, cultural and economic integration of the people of East Africa with common foreign and security policies

Started July 1,2010

Operational

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EAC STRATEGY ON SCALING UP ACCESS TO MODERN ENERGY SERVICES• The Strategy seeks to engage EAC Partner States in

an ambitious initiative to scale up access to modern energy services to support the achievement of the Millennium Development Goals and poverty reduction

• The Strategy aims at developing MDG-based energy access investments in the framework of High Impact Low Cost Scalable (HILCS) options

• Implementation of the Strategy will be at regional and national levels through clear results driven processes

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TARGETS OF THE STRATEGY

1. Access to modern cooking practices for 50% of traditional biomass users

2. Access to reliable electricity for all urban and peri-urban poor

3. Access to modern energy services for all schools, clinics, hospitals and community centres

4. Access to mechanical power within the community for productive use and heating for all communities

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ACCESS GAPS PER TARGET

Target Gap MDG

1. Access to modern cooking practices for 50% of traditional biomass users

70 3,5,7

2. Access to reliable modern energy services for all urban and peri-urban poor

60 1,4,5,6

3. Access to modern energy for all schools, clinics, hospitals and community centres

90 1 - 6

4. Access to mechanical power within the community for heating and productive use

90 1 - 6

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IDENTIFIED STRATEGIES …

• Target 1:

– initiate programmes to increase end-user demand for modern cooking practices

– scale up manufacture and marketing of ICS

– develop channels for reaching nomadic and conflict-affected areas

– develop environmentally sustainable municipal biomass management programmes

• Target 2:

– introduce utility-led financing and cost reduction programmes for new connections

– innovate suitable programmes for slum connections

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IDENTIFIED STRATEGIES• Target 3 and 4:

– promote micro-hydro development

– accelerate rural electrification programmes

– introduce viable business models to provide energy services e.g community driven approaches

– National budget provisions for electrification of schools, clinics and hospitals

• Total Capital expenditure is estimated to be USD 2.7 billion

• Preparatory activities during the first two years are estimated to cost USD 5.41 million

• Programme support, loan guarantees and regional funding required to support capital expenditure is USD 556 million

COST

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IMPLEMENTATION FRAMEWORK …• Areas identified as crucial to the success of

the Strategy: – mainstream access to basic energy services– comprehensive analysis of energy policies– remove barriers to expansion of access to modern

energy services– build national capacity to support the role of private

sector and communities in enhancing effective energy service delivery

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IMPLEMENTATION FRAMEWORK …• Four service lines to facilitate implementation of the

Strategy and trigger scaled-up investments in energy access

– Policy harmonization

– Capacity building of public and private sector

– Formulation of support formulas (e.g. soft loans, grants etc)

– Strategic coordination and project management

• A Project Coordination Unit (PCU) at EAC Secretariat to coordinate regional and national activities

• Focal Points at energy Ministries to coordinate national level activities supported by multi-sectoral working groups

REGIONAL IMPLEMENTATION FRAMEWORK OVERVIEW

EAC Secretariat PCU

EAC Secretariat PCU

Funding for service line activities

Strategic management including:•Development of national strategies•Development of investment plans•Regional policy harmonization•Regional capacity building•Program management

National GovernmentsNational Governments

Implementation of programs including: • Capacity building• Policy reform• Education and awareness• End user and SME finance• Research and development

Funding for energy access scale-up in line with national priorities

Constructive interaction regarding direction and progress of scale-up

Government Ministries and Agencies

Government Ministries and Agencies

National and Regional NGOs

National and Regional NGOs

Research Institutions and Training Centers

Research Institutions and Training Centers

Banks and Microfinance Institutions

Banks and Microfinance Institutions

Consulting Firms and Private Sector Companies

Consulting Firms and Private Sector Companies

Government Ministries and Agencies

Government Ministries and Agencies

National and Regional NGOs

National and Regional NGOs

Research Institutions and Training Centers

Research Institutions and Training Centers

Banks and Microfinance Institutions

Banks and Microfinance Institutions

Consulting Firms and Private Sector Companies

Consulting Firms and Private Sector Companies

Regional and National Strategic Direction

National Implementation

Key Roles:

OVERVIEW OF IMPLEMENTATION FRAMEWORK

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DONE SO FAR …1

• The following have been Achieved

– Baseline energy access information for each Partner State

– SWOT Analysis

– Establishment of multi-sector working groups

– National work plans developed through a consultative process including national validation workshops

– Regional Workshop to further refine the work plans and develop regional work plan

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Key Findings of SWOT and Baseline Analysis• Inadequate Elaboration and Operationalisation of the Legal and

Institutional Frameworks

• Limited Integrated Resource Planning

• Lack of adequate and updated data and information

• Limited Technical and Institutional Capacity – need for capacity building in human, technical, organizational, and

institutional and resource capabilities in meeting all the targets – capacity building for all the players - public, private and consumers

• Limited Private Sector participation

• Inadequate/Inappropriate Financing Mechanisms– inappropriate financing mechanisms to facilitate the development and

promotion of modern energy access. – inadequate mechanisms for consumer financing

• Underdeveloped Market for Modern Energy Services

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Key Features of the Workplans• Based on findings of SWOT and Baseline Analysis, main focus areas

of workplans are:– Mainstreaming energy access into National Development Planning and

Budgeting – Developing pro-poor energy policies and regulatory framework – Strengthening national capacity to deliver energy services for the poor – Identifying high potential business models

• The four areas reflect the four service lines identified in the Strategy

• Workplans developed through Log Frame Analysis– Activities under the four focus areas were proposed for each target– Each Partner State also identified activities to be covered at regional level– All activities identified as regional were consolidated into regional

workplan during the Regional Workshop• Policy harmonisation• Harmonisation of standards and codes• Cross cutting issues

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STEPS TAKEN SO FAR …2

• Donor Mapping

– assess current funding and commitments for the Strategy

– identify funding gaps

– identify and consult funding organizations

• Development Banks

• Donor Consortiums

• Funds

• Philanthropic Foundations

• Private Sectors

– match potential donors to aspects of the Strategy that they are most likely to support

– develop a donor map

– address donor harmonization concerns

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STEPS TAKEN SO FAR• Sectoral Council on Energy

– adopted recommendations of Work plans Study & Donor Mapping

– adopted Work plans as bona fide EAC programmes

– approved establishment of PCU within EAC Structure

• Donor Conference

– Donor conference was organised November 2008

– Donor conference appreciated the strategy document

– Norwegian pledged and honored funding for recruitment of a Project Development Officer

CAPACITY NEEDS

• Additional Human Resource• Financing for the Strategy• Policy Harmonization• Private Sector Participation• Market Development• Technology Transfer• Technology Adoption and perfection• Institutional review and strengthening

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NEXT STEPS• Filling gaps in the donor mapping report supported by

GTZ

• Conducting a capacity needs assessment supported by GTZ/UNDP

• Continue sending proposals for support

• Programme Coordination Unit depending on funds

• Implementation of national workplans

• Replication of selected Projects and Programme

• Scaled up Investments realised

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CONCLUSION• The Strategy is built on four simple and achievable targets

• The Strategy aims at developing High Impact Low Cost Scalable (HILCS) options of MDG-based energy access investments

• Regional and national activities for first two years require review

• Donor mapping to be reviewed to mobilise support for the Strategy

• PCU to be set up within existing structure of EAC Secretariat

• EAC is calling for financial support for the strategy

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Thank you