Innovative 69679 Approaches to Energy Access for the Urban Poor: Summaries of Best Practices from Case Studies in Four Countries ESMAP ESMAP Innovative Approaches to Executive Summary R Energy Access to apid urban growth in developing countries has factors, such as collaborative stakeholder engage- the Urban Poor created an unprecedented demand for energy ment, community empowerment, and project services. Cities face the enormous challenge of financing, were critical in developing new skills Summaries of improving energy access to urban communities within communities and promoting microenter- Best Practices in order to improve education, health, and basic prises as energy service providers. from Case Studies socioeconomic conditions. South Asia and Sub- Innovative Approaches to Energy Access Saharan Africa have the fastest growing urban in Four Countries The cases selected highlight several common bar- populations in the world—projected to grow by riers facing the urban poor in achieving access to 50 percent by 2025. This will put tremendous safer, cleaner, and legal sources of energy. They pressure on cities in these regions as they work to also outline the innovative approaches adopted provide basic services, including energy services, by all stakeholders. The communities, service to underserved areas. providers, governments, and nongovernment While there is widespread understanding of the organizations (NGOs) each played a unique role critical role energy access plays in sustainable in providing legal electricity and clean fuels to the development, there is still a lack of policies targeted urban poor. Areas of focus included: at growing urban poor populations. The objective • High cost of service | The urban poor often of these case studies is to share lessons learned in face multiple constraints that go beyond successful energy access initiatives and to provide a limited disposable income. Due to the point of reference for energy practitioners. The case informal nature of their livelihoods, they are studies identify barriers to energy access that are often unable to afford the required infra- unique to the urban poor, innovative approaches structure, such as meters, wires, appropri- to finding solutions, and the roles of communities, ate stoves, and safe construction materi- service providers, and governments in successfully als. It was essential to establish funding providing access to legal modern energy services. mechanisms to make energy connections Eight case studies focused on electrification and affordable. In Ahmedabad, US Agency for clean fuels were selected from India, Bangladesh, International Development (USAID) funds Colombia, and Brazil—all countries that have had were granted to address the affordability varying success in providing access to modern en- gap. In Colombia, Word Bank funds were ergy services for slum dwellers. Common enabling disbursed through an output-based mecha- Overview of Case Studies Case Study Brief Description Country Coelba Community Agent Electrification Community outreach using members of local community as agents for Brazil Project mediation Commercialization of Improved Cook- Dissemination of improved cookstoves targeted at 400 urban slum Bangladesh Stoves for Reduced Indoor Air Pollution households Electricity for Pavement Dwellers Provision of legal electricity to people living on the pavements of Mumbai India LPG Mobile Retail Dealers Mobile liquid petroleum gas retailers connect new customers and refill Bangladesh gas cylinders in homes Natural Gas Distribution for Low-Income Connecting urban poor households to natural gas Colombia Families Safe and Legal Electricity Connections in A community-based program to safe and legal electricity in New Delhi India Slum Communities Slum Electrification Project Provision of legal electricity to slum communities in Ahmedabad India Sulabh Community Toilets and Biogas Construction of community toilets for slum dwellers, with attached bio- India Plants gas plants generating energy from solid waste Innovative Approaches to Energy Access to the Urban Poor | Summaries of Best Practices from Case Studies in Four Countries nism. In New Delhi, a NGO offered a one-time loan to the • Lack of infrastructure | Narrow roads and unplanned community and in Salvador, the service provider helped dwellings prevent the construction of the basic infrastruc- subsidize the costs in conjunction with a government-run ture required to provide access to energy. In Bangladesh, social tariff program to ensure affordability of regular service provider Totalgaz, the liquid petroleum gas (LPG) bills. division of Total Oil, established a system for convenient access to LPG cylinders. Mobile retail dealers (MRD) were • Illegal status of slum dwellers | Due to the temporary trained and employed to bridge the gap in availability and nature of their houses, slum dwellers are often unable to demand. As a result, energy access was secured while provide the required documentation for electricity connec- also creating livelihood opportunities for the urban poor. tion, such as proof of permanent residence. Many slum dwellers settle on illegal squatter lands and have no rights • Empowering communities | The cases from New Delhi, of tenure. The initiatives in Mumbai, Ahmedabad, and New Ahmedabad, Mumbai, Salvador, and Bangladesh dem- Delhi demonstrate that the constraints related to illegal onstrate the importance of supporting and investing in tenure could be overcome through individual arrangements communities. Whether through community organiza- and negotiations with the responsible agencies. tions, leadership, participation, or building capacity at the local level, community empowerment was found to be a • Lack of education and awareness | Slum dwellers are crucial factor for enabling energy access. often unaware of the health and financial benefits of legal and cleaner energy access, which were noted in almost • Collaborative engagement of multiple stakeholders | all the documented cases. The cases of New Delhi and Engaging and working with multiple stakeholders was Bangladesh demonstrate that targeted awareness-raising critical to the success of most of the initiatives docu- and education campaigns, emphasizing the benefits of mented. The involvement of all stakeholders was crucial cleaner, more efficient, and legal energy access, ultimately to program success, but sustainability and replicability of facilitated the demand for such services by the urban poor these initiatives was contingent upon the willingness of community. service providers, NGOs, and communities to take these initiatives further. • Lack of trust between communities and service provid- ers | Slum dwellers and energy service providers often • Using simple, innovative technologies | The Sulabh, India, perceive each other with suspicion. Utilities doubt slum case and the improved cookstoves case in Bangladesh dwellers’ willingness and ability to pay for services, and demonstrate the importance of simple and innovative slum dwellers view utilities as quick to disconnect service. technologies in facilitating cleaner energy access. This prevents the establishment of a relationship between • Access to credible information | The cases from Colom- urban poor communities and energy service providers, bia, Brazil, and India demonstrate the importance of accu- and their capacity to negotiate for services. Several of rate data in enabling properly targeted subsidies, effective the cases demonstrate the importance of building and interventions, and successful energy access projects. facilitating healthy customer and service provider relation- ships. The Ahmedabad, New Delhi, and Salvador cases • Enabling policy environments | A successful social tariff highlight the energy service providers’ need for assurance program in Brazil and amendments to the Slum Act in that the urban poor can be responsible customers. Similar- Mumbai ensured continuity of energy services provision ly, urban poor populations have to be convinced that the to the urban poor community. appropriate agencies and authorities recognize and will • Establishment of financial and institutional mechanisms to address their concerns. This relationship can be fostered ensure continued access to energy services | To address through training and involving community members to issues of affordability in Ahmedabad, community bill pay- liaise between the customers and service provider, as seen ment centers were set up to ensure convenient access by in Salvador, Brazil. the urban poor and monthly billing (vs. bimonthly billing). ESMAP This study demonstrates several common barriers and highlights diverse ways to overcome them. It shows that success depends on several enabling factors working together, such as stakeholder collaboration and community empowerment. Sustainable initia- tives that have the potential to be replicated in other urban poor communities depend on the continued commitment of stake- holders, and the presence of strong financial and institutional mechanisms. ESMAP Innovative Approaches to COELBA Community Agent Electrification Energy Access to the Urban Poor Project | Brazil Summaries of Background bidding process to serve as lead implementer Best Practices In 1999, Companhia de Electriciade do Estado for a project. CDM’s role was to hire, train, and da Bahia (COELBA), the electricity distribution supervise the COELBA agents, organize events and from Case Studies company, financed two pilot electrification and educational programs, participate in planning and in Four Countries energy�efficiency initiatives in the slum communi- further development of the project methodology, ties of Barrio de Paz and Barrio Jardim da Mang- and, in general, support COELBA’s access, accep- abiera in Salvador, targeting 6,000 households. tance, and credibility in these communities. The The aim of the project was to increase market project has gradually expanded over time, as CDM reach and minimize inefficiencies. The two com- has continued to serve as prime implementer munities were characterized by extreme poverty through consecutive contracts with COELBA. The and had high levels of electricity non�payment. A project has since been scaled up and replicated in socioeconomic survey of electricity consumption other areas of Brazil. patterns found that old refrigerators accounted for 70 percent of residential electricity consumption, Innovative Approaches inefficient lighting accounted for 20.6 percent, and This case was an example of collaborative stake- televisions accounted for 8.4 percent. holder engagement. Households and community associations in intervention areas are both prima- In 2000, COELBA launched the first phase of Pro- ry beneficiaries and key partners in this program. jeto Agente COELBA in 11 communities of Salva- Community associations played an essential role dor, with a team of 19 agents, targeting 20,000 in direct implementation and monitoring of activi- households. Cooperação para o Desenvolvimento ties. They also benefitted from the social fund e Moradora Humana (CDM), a local nongovern- created for reinvestment of financial gains within mental organization (NGO), won a 12�month Projeto Agente COELBA. Existing community as- contract with COELBA through a competitive sociations were identified and invited to become Objectives To reduce the number of illegal connections and strengthen the ability of low�income consumers to pay for their energy consumption Urban Poor Details About 35 percent of Salvador’s population lives at or below the poverty line and informal slums cover 60 percent of the city. There are widespread instances of illegal access to electricity in urban slums, as well as high levels of inefficient energy use. Service Provider Companhia de Electriciade do Estado da Bahia (COELBA), Grupo NeoEnergia Energy Service Access A private, investor�owned utility company invested money in piloting and scaling�up slum electrification Provision with heavy community involvement component. Subcontracts were given to NGO intermediaries—one international NGO and one local organization—to design and deliver a program to selected communi- ties. Extensive social surveying and community participation throughout project design, implementa- tion, and assessment were carried out. Stakeholders + Roles FINANCIER COELBA BENEFICIARIES Residents/customers of Barrio de Paz and Barrio Jardim da Mangabiera IMPLEMENTER Association of Volunteers in International Service (AVSI), Cooperação para o De- senvolvimento e Moradora Humana (CDM), and COELBA PRINCIPAL COELBA Duration 2000–to date Status Ongoing in 67 communities, with 102 community agents ESMAP Innovative Approaches to important collaborators in the project. Association saw a reduction of consumption of 43 percent Energy Access to of Volunteers in International Service (AVSI), an per month. To date, COELBA has distributed the Urban Poor Italian NGO, mobilized the slum dwellers and their or sold 68,911 new refrigerators, and rates of organizations to participate in the physical and repayment are higher than among the average Summaries of social renewal of their neighborhoods. recognized consumer. Reduction in household energy Best Practices this aspect of the project methodology as essen- costs has contributed to important behavioral tial to gaining legitimacy and improving the util- changes, including increased spending on food, from Case Studies ity’s image in the communities, thereby ensuring a health, education, and clothing, resulting in in Four Countries high level of participation and communication, as improvements in the quality of family life. well as reducing resistance to change. Developing and refining the community agent Overcoming Barriers to Energy Access methodology was an innovative response to the Informal urban settlements had high levels of main challenges of slum electrification and previous illegal access to electricity, widespread inefficien- attempts to address isolated issues. The project has cies in energy use, and significant challenges in the gradually and consistently targeted a larger number client�company relationship. After the privatization of communities. The innovative energy efficiency of the electrical sector in 1995, it was apparent to initiatives have been formalized and have gained in- utility companies that illegal and irregular access ternational recognition for their impact: Nuova Ge- to electricity was rampant, resulting in systemic laderia, a vehicle through which COELBA sold new, losses and significant public safety concerns. high�efficiency units at a fraction of retail costs; Households were accustomed to high levels of ValeLuz—a socioenvironmental initiative developed energy consumption due to use of low efficiency parallel to Projeto Agente COELBA—stimulated the light bulbs, faulty electrical installations, and other recycling of light bulbs and old appliances; and the inefficiencies. As a result, energy consumption was Social Action Fund was expanded to 21 cities in consistently above the customers’ ability to pay. Bahia and Pernambuco. Results and Impact Best Practices Over an 11�year period, Projeto Agente COELBA The case offers a methodology to empower and has expanded service from 6,000 households to train community agents. Points of entry in each 200,000 households in Salvador city alone. Direct community were identified by engaging civil society, employment created has grown from 6 community thus, empowering residents as key implementers agents in 2000 to 102 community agents in 2010. through the community agent model. The result Indirectly, at least 200 jobs were created through was an increase in energy access, affordability, the energy efficiency efforts and a Social Action and quality of service provided. Energy efficiency Fund, created by the Community Agent project as and conservation were improved through direct a vehicle to channel funds generated by the sale of interventions. The project took advantage of scrap metal and chlorofluorocarbon gas to address incentives created by the Government of Brazil and social and economic problems in the communities. the regulatory agency, reducing household energy Recent analysis by COELBA estimates that Projeto costs and recouping COELBA’s financial losses. Agente COELBA saves between 26,000 and 44,000 A high level of community involvement, led by MWh/year of energy, depending on the method respected NGO and community�based organization of analysis, just from its refrigerator exchange intermediaries, facilitated COELBA’s communication program. Individual households that received and direct engagement with residents. new refrigerators through the subsidized program ESMAP ESMAP Innovative Approaches to Commercialization of Improved Cookstoves Energy Access to for Reduced Indoor Air Pollution | the Urban Poor Northwest Bangladesh Summaries of Best Practices from Case Studies Background Education Resource Center (VERC) and Concern On dry days in Bangladesh’s urban poor Worldwide, Bangladesh, two local NGOs, in 2005 in Four Countries communities, cooking mostly takes place in the to implement an improved cookstove initiative. scarce outdoor common space, making the area VERC was mainly responsible for identifying smoky and polluted. To address health and energy and disseminating improved cookstoves using a issues in low-income households, US Agency for participatory assessment methodology, training International Development (USAID) designed the local cookstove manufacturing entrepreneurs; a pilot project, with Winrock International, to and managing the microcredit program. Since reduce the effect of indoor air pollution (IAP) Concern Worldwide, Bangladesh was already by introducing improved cookstoves. To sustain running a USAID-funded women and children the effort, the social marketing of cookstoves health project in the target area, they assumed had to be commercially viable. The project was responsibility for raising awareness of the adverse structured around social awareness-building on effects of IAP on health and promoting behavioral the adverse effect of IAP, microfinancing, and changes in health and kitchen hygiene practices. community integration. The extensive research experience of the Innovative Approaches Bangladesh government in developing improved The lack of availability of modern energy services, cookstoves for local conditions was useful during low incomes, and high prices of clean fuels are all project implementation. An Indian cookstove factors that affect energy choices in Bangladesh. model was adapted by local artisans to local Despite rising awareness of health problems, poor needs. The project implementers also used people have few options but to use biomass. In innovative means of engagement to increase 2005, Winrock International engaged The Village the use of improved cookstoves, such as social Objectives To reduce the exposure to indoor air pollution through changes in behavior and energy use practices Urban Poor Details Peri-urban slums have an average membership of 5–6 persons per household and average daily income of less than US$2 per day. Saidpur and Parbatipur represent typical urban slums with cramped huts that have poor ventilation within or among them. Service Provider VERC, Bangladesh; Concern Worldwide Bangladesh; Appropriate Rural Technology Institute (ARTI), India Energy Service Access USAID-funded project implemented by VERC and Concern Worldwide, Bangladesh, supervised by Provision Winrock International; VERC coordinated the technology intervention and provided training for micro- enterprises producing improved cook stoves; Concern Worldwide, Bangladesh implemented behavior- changing activities Stakeholders + Roles FINANCIER USAID BENEFICIARIES Peri-urban slum dwellers of northwest Bangladesh IMPLEMENTER VERC, Concern Worldwide, Bangladesh PRINCIPAL Winrock International Duration 2005–2007 Status Self-sustaining, with informal support from VERC ESMAP Innovative Approaches to marketing and training of entrepreneurs. reduction in cooking time and fuel consumption Energy Access to although the impact on actual lifestyles of the the Urban Poor Overcoming Barriers to Energy Access beneficiaries is yet unknown. Amongst the urban poor in Bangladesh, many free Summaries of forms of biomass—leaves, twigs and branches, The project accomplished its primary objective of Best Practices waste paper, cow dung, jute stick, and straws— reducing the health impact of IAP by introducing mainly gathered by women and children, are improved cookstoves to peri-urban slum dwellers. from Case Studies widely used for cooking fuel. Firewood is bought The project also reached the goal of sustainability in Four Countries occasionally by this group, and families with higher by implementing a commercially viable business collective income use firewood and kerosene. model, and confirmed that improved cookstoves, For people in this income group, the perception when properly used, visibly and measurably of free biomass for cooking had to be changed to reduce greenhouse gas emissions. encourage people to buy modern fuels. Best Practices Accessibility to energy in rural and peri-urban The project is being replicated by VERC in other Bangladesh is dependent on many factors, parts of the country. The important factors for including availability of alternative modern fuels, successful projects include: project developers to pricing, income, personal preference, and interest select appropriate partners with relevant work of the family head. High prices and lack of supply experience; having a clear project activity plan/ of modern energy services are the two main coordination; and defined roles of partners. It is barriers for fuel accessibility. There was also a also important to utilize local technologies, human general lack of awareness of the negative health resources, skills, ideas, and culture. effects of IAP and its relationship to cooking indoors. It is important for the community to have input into any project that introduces new technology. Results and Impact The community must support any technology that Several women are now cooking indoors using they are to adapt, which makes project imple- two-pot fixed stoves with chimneys. Over 1,500 mentation easier. In addition, any technology or improved cookstoves have been installed in the product intervention requires the support and project area. Laboratory and field tests show involvement of local business. ESMAP ESMAP Innovative Approaches to important collaborators in the project. Association saw a reduction of consumption of 43 percent Energy Access to of Volunteers in International Service (AVSI), an per month. To date, COELBA has distributed the Urban Poor Italian NGO, mobilized the slum dwellers and their or sold 68,911 new refrigerators, and rates of organizations to participate in the physical and repayment are higher than among the average Summaries of social renewal of their neighborhoods. recognized consumer. Reduction in household energy Best Practices this aspect of the project methodology as essen- costs has contributed to important behavioral tial to gaining legitimacy and improving the util- changes, including increased spending on food, from Case Studies ity’s image in the communities, thereby ensuring a health, education, and clothing, resulting in in Four Countries high level of participation and communication, as improvements in the quality of family life. well as reducing resistance to change. Developing and refining the community agent Overcoming Barriers to Energy Access methodology was an innovative response to the Informal urban settlements had high levels of main challenges of slum electrification and previous illegal access to electricity, widespread inefficien- attempts to address isolated issues. The project has cies in energy use, and significant challenges in the gradually and consistently targeted a larger number client�company relationship. After the privatization of communities. The innovative energy efficiency of the electrical sector in 1995, it was apparent to initiatives have been formalized and have gained in- utility companies that illegal and irregular access ternational recognition for their impact: Nuova Ge- to electricity was rampant, resulting in systemic laderia, a vehicle through which COELBA sold new, losses and significant public safety concerns. high�efficiency units at a fraction of retail costs; Households were accustomed to high levels of ValeLuz—a socioenvironmental initiative developed energy consumption due to use of low efficiency parallel to Projeto Agente COELBA—stimulated the light bulbs, faulty electrical installations, and other recycling of light bulbs and old appliances; and the inefficiencies. As a result, energy consumption was Social Action Fund was expanded to 21 cities in consistently above the customers’ ability to pay. Bahia and Pernambuco. Results and Impact Best Practices Over an 11�year period, Projeto Agente COELBA The case offers a methodology to empower and has expanded service from 6,000 households to train community agents. Points of entry in each 200,000 households in Salvador city alone. Direct community were identified by engaging civil society, employment created has grown from 6 community thus, empowering residents as key implementers agents in 2000 to 102 community agents in 2010. through the community agent model. The result Indirectly, at least 200 jobs were created through was an increase in energy access, affordability, the energy efficiency efforts and a Social Action and quality of service provided. Energy efficiency Fund, created by the Community Agent project as and conservation were improved through direct a vehicle to channel funds generated by the sale of interventions. The project took advantage of scrap metal and chlorofluorocarbon gas to address incentives created by the Government of Brazil and social and economic problems in the communities. the regulatory agency, reducing household energy Recent analysis by COELBA estimates that Projeto costs and recouping COELBA’s financial losses. Agente COELBA saves between 26,000 and 44,000 A high level of community involvement, led by MWh/year of energy, depending on the method respected NGO and community�based organization of analysis, just from its refrigerator exchange intermediaries, facilitated COELBA’s communication program. Individual households that received and direct engagement with residents. new refrigerators through the subsidized program ESMAP ESMAP Innovative Approaches to Electricity for Pavement Dwellers | Energy Access to Mumbai, India the Urban Poor Summaries of Background providers. Members of the Mahila Milan concluded Best Practices Since 1986, pavement dwellers in Mumbai have that getting electricity from Bombay Electricity from Case Studies struggled to be recognized by city authorities. Supply and Transport Undertaking (BEST) directly in Four Countries Households build temporary shacks along the roads was the best solution for affordable, legal, reliable, and are amongst the poorest of Mumbai’s poor. and safe connections. With no legal recognition or proof of residence, services cannot be provided to them under Overcoming Barriers to Energy Access Maharashtra state government policy. The basic Until 1995, households of pavement dwellers were rights for pavement dwellers in Mumbai were not not recognized by the city. Pavement dwellers had recognized until 1995, when amendments to the few options in accessing electricity and were pay- Slum Act of the city were made. ing high rates for illegal and unsafe connections. Many resorted to acquiring night-time electricity Innovative Approaches illegally from middle men, which proved to be ex- This is an example of a community-based initiative pensive, inadequate, and unreliable. BEST officials in which urban poor communities organized were concerned about the demolition threats of themselves in a structured manner to demand pavement dwellers, which would have led to losses and acquire access to electricity. Although this of cables and other infrastructure. They were also was facilitated by an enabling policy environment concerned about violating their own rule that that favored the community and its efforts, it households without proof of tenure should not be was the pavement dwellers themselves, working supplied with electricity. The Municipal Corpora- with community-based organizations (CBOs) and tion refused to grant “No Objection Certificates� nongovernment organizations (NGOs), who were to the pavement dwellers on the grounds that the able to structure their approach to the service certificates would be used to attain other services, Objective To obtain legal, affordable, reliable, and safe electricity connections for pavement dwellers in the Byculla area of central Mumbai To establish a model for other pavement dwellers in the city to gain electricity access, and build relations between the pavement dwellers and the authorities Urban Poor Details More than 25,000 households in Mumbai live on pavements in the Byculla area of central Mumbai Service Provider BEST Energy Service Access The process to get legal electricity supply from BEST started in 1997, initiated by members of Mahila Provision Milan, a womens’ self help group. The senior management from BEST, the Society for the Promotion of Area Resource Centres (SPARC), Mahila Milan, and the National Slum Dwellers Federation (NSDF) agreed that access to legal electricity would be an initial symbolic gesture to the spirit of 50 years of Indian independance. Stakeholders + Roles FINANCING Community and CBO savings BENEFICIARIES Pavement dwellers of Byculla area in Central Mumbai IMPLEMENTER BEST, SPARC, and Mahila Milan LEADER Mahila Milan Duration 1997 to present Status Ongoing, expanding, and being replicated. Most of the pavement dwellers in Byculla area obtained legal electricity connections by early 2000. ESMAP Innovative Approaches to such as water and sanitation. As a result of this initiative, theft of electricity in the Energy Access to area has been curbed. This approach is now being the Urban Poor Amending the Slums Act removed the lack of rec- replicated in other slum areas within the city as ognition barrier preventing access to basic services. well as amongst pavement dwellers in cities outside Summaries of Once this was overcome, the pavement dwellers of Mumbai. An innovative concept of “community Best Practices could work to establish the many prerequisites metering,� with a number of households sharing necessary for safe, affordable, and reliable electri- one meter, was introduced to sustain costs of meter from Case Studies cal connections with the service provider. installation. in Four Countries Results and Impact As a result of this case, a new initiative has Almost all households in the area were able to been introduced in Mumbai to overcome the get electrical connections over time. Pavement requirement for “No Objection Certificates� from dwellers in areas near Byculla were also able to the municipal corporation. access these services following a similar process. As a result of the initiative, BEST changed its policy Best Practices for electricity supply to urban poor populations, This case demonstrated the importance of commu- specifically pavement dwellers. They recognized nities organizing to demand and negotiate energy their entitlement to electricity, in the same way access requirements with authorities. Many other that the pavement dwellers recognized a need to pavement dwellers in and near the city learned organize themselves as a group and comply with from the Byculla experience and followed a similar the preconditions set out by the service provider. approach to successfully obain electricity access. ESMAP ESMAP Innovative Approaches to LPG Mobile Retail Dealers | Bangladesh Energy Access to Background month. Over 100 jobs were generated within the Urban Poor TOTALGAZ conducted an extensive market survey the TOTALGAZ distribution system, enabling hard in 2004 to inform a market expansion strategy working, but less-educated populations to earn a Summaries of in areas where piped gas connection was either decent living. not available or inadequate. The survey found Best Practices that a substantial number of small- and medium- The project demonstrates the successful and from Case Studies enterprises (SMEs), including restaurants, effective role of simple, innovative technological in Four Countries bakeries, and tea stalls in poor urban areas solutions. Although an old concept, the were either using firewood or kerosene. Either application of home service for LPG bottle supply the owners were unaware of the availability of was first used in Bangladesh by TOTALGAZ. The liquefied petroleum gas (LPG) as an alternative or project also empowered poor people with only found carrying LPG refill bottles too difficult. As a junior school education to earn a decent living result, the sales team devised a way of delivering and even become entrepreneurs. Eventually, one LPG door to door. The SMEs agreed to use LPG if MRD obtained distributorship from TOTALGAZ and home delivery and reliable supply were ensured. now employs six to seven MRDs himself. Household LPG supply was a natural addition to their business. Overcoming Barriers to Energy Access Although, the SMEs could afford to pay for Innovative Approaches LPG, the lack of an efficient distribution system The concept of using mobile retail dealers (MRDs) prevented access to using LPG. Consumers had for delivery of LPG evolved from the findings of difficulty transporting bottles to filling stations a market survey and was officially launched in that were often a distance away. Also, many SMEs January 2005. TOTALGAZ distributors selected were not aware of the benefits of using LPG and MRDs whom they perceived to be trustworthy, the availability of LPG in the country. and provided financial support and rickshaw vans or bicycles for carrying the LPG bottles to Results and Impact the consumers. By supplying LPG bottles and This initiative has been a commercial success for accessories, along with providing technical TOTALGAZ. The response to the MRD program support, an MRD could earn as much as US$130/ has been so successful that the company is Objectives To increase the use of LPG amongst small- and medium-sized enterprises by making reliable home delivery of refill bottles Urban Poor Details The target group was people using biomass or kerosene for either household cooking or commercial restaurants/bakeries, living either in major city suburbs or relatively underdeveloped areas where infrastructure support is poor, with a reasonable level of monthly income. Service Provider TOTALGAZ Bangladesh Energy Service Access The initiative was a business development strategy by TOTALGAZ. Local MRDs were personally Provision selected by the owner of the distributorship. The distributor explained the terms and conditions of the business. Financial support came from TOTALGAZ. They also provided training at the early stage of the program. Stakeholders + Roles FINANCIER TOTALGAZ BENEFICIARIES Urban poor and SMEs as users and providers of LPG IMPLEMENTER LPG distributors through MRDs PRINCIPAL TOTALGAZ, Bangladesh Duration 2005–to date Status Ongoing and growing with support from TOTALGAZ ESMAP Innovative Approaches to still supporting the project. The MRDs are Best Practices Energy Access to making at least US$80 per month from the The existing SME operators were using kerosene the Urban Poor direct commission for bottles sales, plus tips and biomass stoves and this initiative provided a from customers. They also sell regulators and solution to their needs. Additionally, the project Summaries of connecting pipes for the stoves. Because of was implemented by people who understood the Best Practices its success, TOTALGAZ’s MRP program is being business environment very well. Communication imitated by other LPG marketing companies, and synergy among the training, marketing, and from Case Studies generating more employment opportunities. management departments of the company was in Four Countries important in formulating a winning strategy for The project achieved the primary objective of the program. Selection of MRDs by local distribu- expanding the LPG market among urban SMEs tors was very important as they knew the local without piped gas connection. It also generated problems and issues that could be handled by the employment for the poor. Now, the model is being MRDs. The model not only grew within the TOTAL- replicated (informally) by other LPG marketing GAZ distribution network, it is now being imitated companies. by other LPG companies. ESMAP ESMAP Innovative Approaches to Natural Gas Distribution for Low-Income Energy Access to the Urban Poor Families | Colombia Summaries of Background international verification agencies to perform Best Practices Despite abundant natural gas resources, poorer technical and financial audits to provide evidence communities in Colombia continually used of new connections to the funding institution. The from Case Studies polluting forms of energy for cooking and heating funding for subsidizing the connection costs was in Four Countries requirements. The barrier to cleaner energy access provided by the UK Department for International was the relatively high initial cost of securing Development and International Finance a natural gas stove and connection. In 2006, Corporation, and administered by the GPOBA of the largest natural gas holding and distribution the World Bank. company in Colombia, Promigas, approached Global Partnership on Output-Based Aid (GPOBA) Overcoming Barriers to Energy Access to fund an initiative that would subsidize the initial The main obstacle identified in this case was the cost of a gas stove and connection over a period of high cost of the service connection. Additionally, six years. the inability of households to pay meant that the minimum level of demand might not be Innovative Approaches met for distributors to supply natural gas to the The project sought to subsidize the one-time communities. To address this issue, the costs of connection cost for natural gas access. Several connection were subsidized by grant funding from stakeholders were involved in the project the World Bank. at various stages to ensure success. Local municipalities helped to identify eligible recipient Community buy-in for the project was addressed households, the poorest households. Fundaci�n through pilot study. Outreach and awareness Promigas coordinated the project. They worked programs were used to educate the community with the regional distribution companies to install on the benefits of consistently using natural gas. new stoves and connections, and appointed Objective To provide 35,000 of the poorest households along the Caribbean coast and in the southwest of Colombia with natural gas service connections Urban Poor Details Over half of Colombia’s total population lives below the poverty line.1 Approximately 85 percent of natural gas users come from households that are classified as among the lowest socioeconomic groups; the Caribbean coast and southwest region have some of Colombia’s poorest households. Service Provider Promigas and its subcompanies: Gases de la Guajura, Gases del Caribe, Surtigas, and Gases de Oc- cidente Energy Service Access The Global Partnership for Output Based Aid (GPOBA) gave a grant to Promigas and Fundaci�n Promi- Provision gas to implement and monitor the provision of new gas stoves and connections amongst the poorest qualifying households in four separate areas. The money subsidized the one-time connection fee and the connection over a period of 6 years. Stakeholders + Roles FINANCIER GPOBA BENEFICIARIES The poorest households, classified as strata 1 and 2 as per the socioeconomic stratification rating system IMPLEMENTER Fundacion Promigas, the charitable arm of the private distribution holdings and distribution company, Promigas PRINCIPAL Promigas Duration 2006–2014 Status Phase 2 – Ongoing; may be replicated across Colombia and other countries ESMAP Innovative Approaches to The output-based grant financing was contingent Best Practices Energy Access to on verification by independent evaluators of There were several inherent project design the Urban Poor household connections and three months of elements that enabled project success, such as usage. Fundaci�n Promigas hired Deloitte and the output-based aid mechanism, independent Summaries of another private firm to conduct technical and verification, and certifications. The output-based Best Practices financial audits. aid mechanism was suited to the provision of basic services and the independent verification from Case Studies Results and Impact agents were effective for evidence-based resource in Four Countries Of the 35,000 targeted new service connections, allocation. Working in collaboration with partners 34,138 new connections were verified—over and implementers meant rapid connection 98 percent. Before the project, 40 percent of installation while a partial subsidy allowed impact households suffered respiratory illnesses.1 After on a greater number of households. By addressing installing the new stoves, respiratory illness fell health issues, the project achieved an overall by 75 percent due to decreased exposure to standard of living improvement. This is particularly indoor air pollutants from the burning of fuels. important because it used an output- and results- The project saw improved health outcomes, based aid mechanism, rather than distributing and was more effective, both in terms of costs money into projects without stringent guidelines. and outcomes, than other targeted health Good accountability, monitoring and evaluation interventions with an estimated economic rate of mechanisms, and guidelines for responsibility return of 62 percent over 10 years.1 were the key factors. Evidence-based financial and resource allocation was also crucial to the Apart from the individual health impacts, project’s success. environmental health impacts were a concern. As a direct result of using natural gas to replace firewood, an estimated 34 hectares of forest and swamp land has been preserved.1 1 Mandri-Perrott, Cledan & Dominic Patella. 2007. “Output-based aid in Colombia: Connecting poor households to natural gas service.� OBApproaches 17 (November). ESMAP ESMAP Innovative Approaches to Safe and Legal Electricity Connections in Energy Access to the Urban Poor Slum Communities | New Delhi, India Summaries of Background barriers to electricity access. The research used Best Practices The Delhi-based nongovernmental organization innovative tools, such as Mainstreaming of Urban (NGO), Integrated National Development Poor Women in Design for Resource Assessment from Case Studies Centre for Advancement Reforms and Education (MAURA), to effectively target interventions, such in Four Countries (INDCARE Trust), researched barriers to securing as microfinancing. They focused on supply con- electricity among slum dwellers by conducting straints, payment mechanisms, and the quality of several surveys and workshops. The research services provided. revealed a high proportion of slum households with illegal connections, amounting to electricity INDCARE served as an intermediary between the theft. In 2003, the organization was approached community and the utility company, NDPL, and by USAID and North Delhi Power Limited helped the community to negotiate agreements (NDPL) to build upon this research and assist with the utility company. They also provided lead- with implementing an energy access project in ership training to community self-help groups to the Bhalla Factory slum of New Delhi. Through help them articulate their demands and concerns community outreach, awareness, education, and to NDPL. They worked with the community to microcredit, the organization facilitated the legal change attitudes and understand their responsibili- recognition and electrical connections in two slum ties as citizens to pay for services they consume. communities in North West Delhi. INDCARE collaborated with USAID and other Innovative Approaches microfinance institutions to provide capacity INDCARE’s community-based research provided building for the community and to finance the the basis for the design of the electrification costs of connecting households to the grid. An program. The research was undertaken to under- outreach and advocacy campaign raised aware- stand the needs of the community and explore the ness in the community about the risks of illegal Objective To facilitate safe and legal electrification in two slum communities—Bhalla Factory and Jaipur Golden—through community education and microfinance in order to promote economic benefits for women Urban Poor Details Approximately 45 percent of Delhi’s population lives in unauthorized colonies, informal settlements, or slums. There are an estimated 1,040 such settlements in the city. About 39 percent of slum dwellers from the Bhalla Factory slum earn less than US$1 per day. Jaipur Golden slum is similar. Service Provider NDPL Energy Service Access Slum dwellers’ theft of electricity posed a safety risk to themselves and significant revenue loss for the Provision utility company. The illegal status of the slums prevented them for gaining access to electricity. Stakeholders + Roles FINANCIER USAID funded capacity building for the project, and INDCARE Trust provided a microcredit loan to facilitate the electrical connections BENEFICIARIES Residents of Bhalla Factory and Jaipur Golden slums IMPLEMENTER INDCARE Trust, the NGO who engaged the community and helped build capacity, and MHT PRINCIPAL INDCARE Duration 8 months in 2004 Status Completed in 2004 ESMAP Innovative Approaches to electrical access. Community representatives were illegality and lack of funding to provide electrical Energy Access to coached to articulate their demands of their legal connections in two slum communities. This was the Urban Poor right to electricity and take the necessary steps to accomplished following campaigns to empower overcome issues of illegality. Awareness-raising the communities in their negotiations with the Summaries of events included street performances and poster government and utility, as well as by educating Best Practices campaigns, which were used to help teach the community members on the benefits of legal community negotiation skills necessary to demand electrical connections. from Case Studies and attain their rights. in Four Countries In the first few months of implementation, almost Overcoming Barriers to Energy Access 50 percent (400 out of 850 households) in the A high level of mistrust hindered dialogue slum had requested legal electricity connections. between the community and utility company, By the end of the project, 100 percent which energy access to the community. The connectivity was reached. utility did not recognize the legal existence of the community and refused to serve them. The The project was successful primarily because of community resorted to illegal connections to INDCARE’s role in securing financing, outreach obtain electricity. efforts, and bridging the communication gap between the utility and community. However, The community could not afford the high upfront the success of the project was not scaled up nor costs of connecting to the grid and they did not replicated due to failure of the utility and INDCARE have access to financing or loans. Households Trust to reach agreement on issues surrounding in the community were perceived to be risky their respective roles. The communities were not borrowers. As a result, financing institutions able to raise the required funds for replication. required a level of certainty that the community However, within the community, the meters and members would be around long enough to electrical connections remain in use. finish making payments. INDCARE worked with the Mihila Housing Trust (MHT) to provide Best Practices microfinancing and to ensure timely repayment of Community engagement and participation were the loans. key to the project’s success. The women’s mi- crocredit groups ensured, for instance, that the Results and Impact money borrowed from INDCARE Trust was paid The project resulted in overcoming barriers of back in a timely manner. ESMAP ESMAP Innovative Approaches to Slum Electrification Project | Energy Access to the Urban Poor Ahmedabad, India Summaries of Background the project, and AMC provided certificates of non- Best Practices In 1998, the Ahmedabad Municipal Corpora- eviction to the slum communities, a prerequisite tion (AMC) initiated a project to provide physical for slum communities to gain access to electricity from Case Studies infrastructure to slums in Ahmedabad, including connections. in Four Countries sanitation, road, and water facilities. Following the success of this initiative, the beneficiary slum com- Overcoming Barriers to Energy Access munities demanded electricity connections. To A multistakeholder approach in the pilot phase facilitate this, Saath and Gujarat Mahila Housing of the project allowed for the early identification Trust (MHT), which were already involved in slum of many barriers to achieving energy access. upgrade programs in the city, approached the Provisions to counter these obstacles were Ahmedabad Electrical Corporation (AEC) to launch made in advance. In the beginning, for instance, the slum electrification program. the utility company was apprehensive about connecting the slum dwellers to electricity. They Innovative Approaches were concerned that connecting households to The successful pilot phase of the program was electricity could lead to illegal claims of tenure enabled by active engagement and collaboration and non-payment of bills by the community. among the utilities, community-based organizations (CBOs), beneficiary communities, The communities’ attitude about paying for and the Ahmedabad municipality. The CBOs electricity posed another barrier. Before the facilitated dialogue and enabled a rapport to grow program, many slum households had acquired between the utility and the communities. USAID illegal electricity connections, for which they provided financial assistance in the pilot phase of paid only Rs. 50 (approximately US$1) for each Objective(s) To develop a private sector/civil society partnership to extend legal and reliable, modern energy ser- vices to slum communities in Ahmedabad Urban Poor Details The project initially targeted 5 slum communities in Ahmedabad, but later expanded to include all 710 slum communities in the city Service Provider Torrent Power / AEC Energy Service Access Saath and MHT, coordinated the provision of electrical services for slum dwellers by the local electri- Provision cal company. Stakeholders + Roles FINANCING USAID was the primary funder during the pilot phase of the project. It was associ- ated with the project for 3 years, from 2001–2003 BENEFICIARIES 5 slums in the pilot project and later all 710 slums in Ahmedabad IMPLEMENTER AEC was the lead project coordinator and supplier of electricity and has been the primary player from the inception of the project in 2001 to the present day PRINCIPAL Saath and MHT were key facilitators of the project. They acted as links and en- abled Torrent Power, AMC, and the slum dwellers to work in close coordination. Their role—of prime importance in shaping the project—was restricted to the pilot phase of the project, which ended in 2003. Duration 2001–2008 Status Completed. By 2008, all 710 slums in Ahmedabad were electrified. Over 200,000 households have been legally connected to electricity. ESMAP Innovative Approaches to point in their house, irrespective of consumption. Best Practices Energy Access to Since most households had become accustomed The multistakeholder engagement approach the Urban Poor to receiving relatively free electricity, inefficient in this case allowed various groups to come energy practices were prevalent in many together to facilitate the provision of electricity Summaries of households. For instance, most houses had lights to slum dwellers in an affordable and sustainable Best Practices and fans running throughout the day. When manner. It is an example of successful community the legal connection was provided and the first mobilization and public-private partnership. Other from Case Studies bill was delivered at an average of Rs. 200–250 key lessons are that poor communities are willing in Four Countries (approximately US$4.5), the slums dwellers to bear their share of the cost if good and reliable protested the high cost. Their protests were services are provided, and that government rules eventually quelled with awareness campaigns and sometimes can be relaxed in the service of the training programs, targeting the risks of illegally common good. connected electricity. The program has the potential for replication Results and Impact with the involvement of local nongovernmental To date, all slum dwellers in Ahmedabad—a organizations, which can play a significant role total of over 200,000 households in 710 slum in educating and mobilizing the community to communities—have legal electricity connections. partner with the government for similar projects. They receive and pay electricity bills on a monthly Recently, some interest has been expressed in basis. These bills are routed to regular collection replicating the model in Africa and Mumbai. centers throughout the city set up by the utility. ESMAP ESMAP Innovative Approaches to Sulabh Community Toilets & Biogas Plants | Energy Access to Patna and New Delhi, India the Urban Poor Summaries of Background in other urban areas. The technology is simple Best Practices The lack of basic services, such as sanitation enough to be implemented by locally trained and clean drinking water, is the cause of many members of the community, and all materials from Case Studies life-threatening diseases, including typhoid and are also locally sourced. The program has sought in Four Countries cholera. Traditionally, it has been the job of the support and cooperation of local authorities, “scavengers� to collect human solid waste from who approved the use of land for the project and houses and transport it on their heads to dispose provided financing for the construction of the of it. A social service organization, Sulabh, decided community toilets. to develop technologies to provide public toilets linked with a biogas plant and effluent treatment Overcoming Barriers to Energy Access system, for the complete recycling and reuse of A major barrier was the lack of available human waste. technology and funding to provide proper sanitation services. The tradition of using human Innovative Approaches scavengers to collect and dispose of human solid The program employs a unique combination of waste has been established over many years, simple technological, financing, and management although there is a law prohibiting the practice of innovations for the disposal of human solid waste. scavenging. The community had to be educated Public toilets are linked to biogas plants, which on the health dangers of open defecation, and the recycle the wastes into useful energy. The initiative benefits of using the ‘pay-per-use’ facilities. One also sought to improve the livelihoods of people barrier encountered in this case was that not all who used to collect human solid waste as a source segments of the population were willing to pay of income. This model has proven to be sustain- for the service of using public toilets. able, financially sufficient, and highly replicable Objective To provide clean, hygienic sanitation facilities to slum dwellers To provide cleaner energy to slums to meet their cooking, lighting, heating, and electricity generation needs Urban Poor Details More than a quarter of the urban population in India does not have access to a lavatory. Traditionally, human “scavengers� have been used for the disposal of solid waste from around 13 percent of India’s urban households. Service Provider The Sulabh International Social Service Organization Energy Service Access Public toilets linked with a biogas plant and effluent treatment system for the complete recycling and Provision reuse of human wastes Biogas generated from human solid waste has been used to meet energy needs—cooking, space heat- ing, and lighting Stakeholders + Roles FINANCIER Sulabh International Social Service Organization BENEFICIARIES Consumers of biogas and the human solid waste collectors or “scavengers� (now trained to do better jobs) IMPLEMENTER Sulabh International Social Service Organization PRINCIPAL Sulabh International Social Service Organization Duration 1982/1990s–to date Status Ongoing. There are currently over 100 biogas plants in operation across India, serving approximately 3 million people daily. ESMAP Innovative Approaches to Results and Impact Best Practices Energy Access to There are about 6,000 community toilet This case highlights how simple technological in- the Urban Poor complexes, which serve about 12 million novations, combined with a financial model and customers daily. Out of these, 100 have biogas able leadership, can help provide better basic Summaries of plants linked to them. The public toilets have services to the poor. The technology was devel- Best Practices provided people with hygienic sanitation facilities. oped as a practical solution to understanding of from Case Studies The biogas plants have given more people, the needs of the urban poor. The simplicity of the especially the poor, access to cleaner fuel. technology is the innovation that underwrites its in Four Countries Additionally, the use of manure as a by-product successful implementation. has improved the fertility of arable land. The program has attracted a solid paid workforce The community has benefited from new skills and an army of volunteers, about 50,000, who acquired through training and capacity building to provide technical expertise and oversight. Most of construct and maintain the toilets. With their new the workforce is recruited from the local commu- skills, former-scavengers now have an opportunity nities and are trained in operational and mainte- to earn a more dignified living. Additionally, there nance functions. The program also embodies an has been a transfer of knowledge internationally element of social consciousness and has changed as Sulabh has made their plans freely available and the lives of the scavengers, freeing them from has provided training on sanitation technologies their plight as human solid waste collectors. for other developing countries. ESMAP