2016年-查塔姆研究所_Toolkits_for_the_Moving_Energy_Initiative_33页_416kb

Private-Sector Engagement: The Key to Efficient, Effective Energy Access for Refugees

Core Content

This document explores the potential of private-sector engagement in improving energy access for refugees and internally displaced persons (IDPs). It outlines the challenges faced by both humanitarian actors and private companies in this context and proposes strategies to overcome them, emphasizing the importance of collaboration, innovation, and sustainable models.

The Moving Energy Initiative (MEI), a collaboration between GVEP International, Chatham House, Practical Action Consulting, the Norwegian Refugee Council (NRC), and the United Nations High Commissioner for Refugees (UNHCR), aims to develop tools and guidance for integrating private-sector actors into energy interventions in displacement settings. The paper is part of a series of toolkits and is intended for energy implementers and policy-makers.

Main Challenges

The following challenges hinder the effective execution of energy projects in refugee and IDP settings:

• Infrastructure management: Humanitarian agencies typically own and manage large-scale energy assets, often lacking the expertise for efficient operation and maintenance. Private-sector actors have limited access and incentive to maintain these assets.
• Limited data availability: Inadequate information on energy consumption, end-user preferences, and cash availability complicates cost-benefit analysis and solution design.
• Decision-making challenges: Complex and siloed decision-making processes within humanitarian organizations, along with high staff turnover, impede collaboration with private-sector actors.
• Procurement issues: Procurement processes are often biased toward low cost, leading to poor-quality products. There is also a lack of transparency and clarity in selection criteria.
• Transportation costs: Remote and insecure locations increase the cost and risk of transporting energy products.
• Financing risks: Short-term funding cycles and misalignment of costs and beneficiaries reduce the incentive for long-term investment.
• Sensitization and distribution: Limited understanding of end-user needs and lack of sensitization efforts can lead to ineffective product adoption and unintended consequences.
• After-sales service: Poorly designed products and lack of in-camp technical support limit the effectiveness of energy solutions.
• Risk management: Security risks, asset theft, and the potential closure of refugee camps pose significant challenges to long-term investments.

Key Approaches for Managing Challenges

Introducing Solutions at Scale

• Prioritize scalable, context-relevant solutions to address the global scale of displacement.
• Companies can only achieve cost and operational efficiencies through large-scale operations.
• Tailor solutions to local contexts and end-user needs, as these vary across camps.

Managing Energy Infrastructure

• Reassign responsibility for large-scale assets to private-sector actors with the expertise to optimize and maintain them.
• Explore alternative contract structures such as:
  • Design, Build, Operate (DBO): Public funds construction; private sector handles design, operation, and maintenance.
  • Build, Own, Operate (BOO): Private sector finances, builds, and operates the asset.
  • Build, Own, Operate, Transfer (BOOT): Private sector operates the asset and transfers ownership to the public agency at the end of the contract.
• Include terms in contracts that account for risks such as:
  • Longevity of operations
  • Asset condition
  • Currency and fuel costs
  • Dispute resolution and sustainability requirements

Addressing the Information Gap

• Conduct on-the-ground assessments to better understand end-user needs and market dynamics.
• Implement sensitization sessions to raise awareness of technology and business model options.
• Partner with independent experts for market research and technology analysis.
• Develop a centralized database of lessons learned from past energy interventions.
• Create case studies of bankable solutions and use them to guide future projects.

Improving Procurement Processes

• Promote competitive and transparent procurement through open-source platforms like the UN Global Marketplace.
• Use appropriate procurement methods (invitation to bid, request for proposals, etc.) based on the specific energy needs.
• Develop procurement guidelines that prioritize quality, service, and warranty.
• Ensure pre-testing and pre-approval of products by technical and supply-chain experts.
• Sanction products by local quality assurance agencies to promote decentralized decision-making and local procurement.
• Mandate field-testing to validate the relevance of solutions in specific contexts.

Minimizing Transportation Costs

• Utilize local inputs and production facilities to reduce transportation costs.
• Leverage existing transportation infrastructure through local entrepreneurs or humanitarian actors.
• Consider the landed costs of delivered materials and fuel in tendering processes.
• Coordinate with UN convoys to ensure safe and cost-effective transport of assets.

Developing Appropriate Payment Mechanisms

• Introduce rental or lease-to-own models to mitigate administrative payment risks.
• Establish power-purchase agreements with local energy providers for long-term solutions.
• Provide concessionary funding from donors to support initial investment, with potential for transition to private financing.
• Consider revenue or rental guarantees backed by reliable partners.
• Implement minimal and maximum load requirements and six-month removal notices to allow for efficient repurposing of assets.

Proposed Energy Delivery Models

• Energy as a Service: Instead of purchasing products, companies provide energy services, reducing the need for extensive infrastructure.
• Portable energy infrastructure: Mini-grids and solar farms can be repurposed by both humanitarian and private actors.
• In-camp manufacturing: Reduce transportation costs by producing goods locally.
• Remote monitoring: Enable efficient asset management and early detection of operational issues.

Key Case Studies and Examples

• AFD and Sunref (Jordan): A $53 million initiative that supported green energy investments in Jordanian schools, reducing energy costs and improving sustainability.
• Prakti (Cookstove Manufacturer): Recommends a field-testing methodology involving design workshops, controlled cooking tests, and collaboration with local partners.
• Aggreko and Redavia: A potential hybrid energy solution where Aggreko provides temporary power and Redavia offers renewable energy, with the asset rented to camp administrators.

Conclusions and Action Points

Private-sector actors can significantly enhance energy access for refugees and IDPs by providing market-tested, cost-efficient, and sustainable solutions. However, their involvement requires addressing key challenges through improved communication, collaboration, and policy alignment. The following action points are suggested:

• Develop and implement scalable, context-appropriate energy solutions.
• Improve procurement transparency and quality standards.
• Establish robust payment mechanisms that align with funding cycles.
• Strengthen infrastructure management through innovative contract structures.
• Foster collaboration between humanitarian and private-sector actors to ensure sustainable and effective energy access.

References

• The paper is supported by the UK Department for International Development (DFID).
• Insights are drawn from discussions with companies operating in base-of-the-pyramid communities.
• It should be read in conjunction with other MEI publications, including those on cooking systems and energy situations in specific refugee camps.