19 May 2015: Practical Action and the EU Energy Initiative Partnership Dialogue Facility (EUEI PDF) launched a new framework for analyzing energy market systems during a side event at the Second UN Sustainable Energy for All (SE4ALL) Forum in New York, US. The methodology is aimed at supporting development professionals in designing effective interventions for energy market development and increased energy access, and focuses initially on decentralized markets.

The framework is detailed in a report published by Practical Action Consulting and EUEI PDF in February 2015, titled ‘Building Energy Access Markets: A Value Chain Analysis of Key Energy Market Systems.’ It aims to provide a tool for policy makers and development practitioners for systematically analyzing and assessing decentralized energy service markets. Applicable sectors include electricity mini-grids, solar photovoltaic (PV) lanterns and home systems, biomass cook stoves and fuels, and liquid petroleum gas (LPG) stoves and fuels.

The manual provides: a tool for developing “effective interventions for supporting particular energy market segments in particular countries”; guidance on improving energy markets for increased energy access, investment and sustainable growth; and an approach aimed at enhancing coordination of efforts by various stakeholders, in particular vis-à-vis the SE4ALL goal of universal energy access by 2030.

In addition to presenting the three-level framework (comprised of the value chain, secondary value chains and enabling environment), the report explains its application to five energy market sectors, mapping relevant elements and linkages in each level. The approach presented in the report is based on two stages, namely: mapping an energy market system against the framework; and identifying key obstacles and opportunities, and designing supporting interventions for overcoming the former.

The framework was launched on 19 May during a high-level side event on ‘Coordination and Harmonization of African and International Energy Initiatives’ organized by Practical Action, which brought together high-level stakeholders from Africa, Europe and major energy initiatives upon the invitation of the Africa-EU Energy Partnership (AEEP) Secretariat to discuss coordination and harmonization of various energy initiatives operating in Africa. [SE4ALL Forum Event Webpage] [Publication: Building Energy Access Markets] [IISD RS Coverage of the Second Annual SE4ALL Forum]