2015/34 Supported by k nKonw A A weldegdeg e ol n oNtoet e s eSrei r e ise s f ofro r p r&a c t hteh e nEenregryg y Etx itcrea c t i v e s G l o b a l P r a c t i c e The bottom line Scaling Up Access to Electricity: Pay-as-You-Go Plans in Although the payment models offered by off-grid energy companies are less flexible than Off-Grid Energy Services those implemented with great Why is this issue important? any service for which they have not first paid. As a result, payments success by mobile telephone often can be made in smaller amounts than would otherwise be companies, they may still Flexible payment plans can make electricity possible, and customers have greater control over their consumption have an important role to play accessible to more people and thus of their spending. Both features, which mirror the pattern of in scaling up off-grid energy consumption of nonelectrical energy products, should enable off-grid services for billions of people About 1.2 billion people worldwide lack access to electricity, most companies to reach a much broader user base than they could if who lack access to electricity. of them in rural areas. Many live in areas unlikely to be reached they were offering constant service under conventional terms. The More research is needed to by foreseeable extensions of the grid and will have to obtain their effectiveness of pay-as-you-go models in reaching low-income assess the importance of electrical service from an off-grid provider (IEA 2011). Presently, customers has been demonstrated by the success of mobile flexible payments in attracting households without electricity spend about $18 billion each year on telephony—in fact, their adoption in developing countries has been reliable low-income customers. kerosene and other products that substitute for electricity. Nine out linked to the spread of mobile telephones (Rouvinen 2004; Kalba of ten of those households could save by using off-grid electricity 2008; World Bank 2014). instead—if it were available (IFC 2013). Although small payments (whether flexible or not) are probably To attract substantial numbers of customers and be able to just as important as payment flexibility for driving the expansion provide modern energy services to all, off-grid providers must take of off-grid energy, the focus of this note is on the mechanics of into account the circumstances of their customers. Because most flexible payments that allow consumers maximum control over the households in rural areas have low and variable incomes, flexible timing and amount of their expenditures. We examine a sample of payment models will be important in making off-grid energy services pay-as-you-go models presently being used by small-scale providers Alejandro Moreno appealing to customers. By allowing off-grid companies to charge of electricity, comparing the degree of payment flexibility offered by is a private sector usage fees to recover their costs, so-called smart meters (which each provider with the fully flexible models offered by mobile tele- development specialist allow providers to switch the power supply to individual households with the Energy and phone operators. After evaluating energy companies’ experiences on and off) are enabling off-grid providers to invest in the assets they Resource Efficiency with these models, we discuss the potential of payment flexibility to need to expand electricity services. Smart meters also allow flexible Advisory team at IFC. drive expansion of off-grid electricity service.1 consumption of electricity services and thus flexible “pay-as-you-go” Asta Bareisaite is a payment plans. junior professional Pay-as-you-go models have clear advantages for customers with associate in the World low or variable income. Instead of regular, fixed payments, customers Bank’s Trade and 1 The comparison with mobile telephony is not intended to imply any inherent similarity pay directly for the service they use, often in the form of a package Competitiveness Global between the two fields; mobile telephony simply serves as the clearest example of an industry Practice. of appliances and the associated power supply—they do not receive that has implemented pay-as-you-go models with tremendous success. 2 S c a l i n g U p A c c e ss t o E l e c t r i c i t y : Pay- as - Y o u - G o P l a n s i n O f f - G r i d E n e r g y S e r v i c e s How suitable are pay-as-you go models for specific customers reduces the need for operators to recover regular payments from each user, as long as the pooled average usage (and electricity service? the total revenue from the pool) remains relatively stable and suffi- User-specific costs associated with cient. If some users do not use their phone for a period of time, the electricity service may limit the applicability fixed costs of transmission towers will be recouped from other users of pay-as-you-go models of the bandwidth without creating the need for new infrastructure. “Most off-grid energy By contrast, most off-grid energy solutions have relatively high solutions have relatively Flexible payment for off-grid electricity is a recent phenomenon, fixed costs that cannot be as easily spread across the user base. high fixed costs that and it is not yet clear whether fully flexible options can be offered Mini-grid customers, for example, require dedicated transformers, cannot be as easily spread successfully. To date, pay-as-you-go plans offered by providers of off- power lines, and internal wiring specific to an individual household grid electricity are less flexible than those offered by mobile phone or small group of households. In case of solar home systems or across the user base. companies, which may reduce their appeal among low-income lighting devices, the entire cost of the system is typically specific Mini-grid customers, for customers. to the individual user, unless systems can be easily removed and example, require dedicated Nevertheless, a growing number of off-grid providers operating transferred. Providers traditionally have sought to recover those transformers, power mini-grids or offering solar home systems (or other types of indi- costs from particular users on a regular basis. It would appear, vidual units) has begun to offer pay-as-you-go options to attract therefore, that the cost structure of electrification technologies lines, and internal wiring customers with low or irregular incomes. Smart meters that allow a might compel operators to insist upon minimum fixed payments or specific to an individual single customer’s power unit to be remotely disabled have been a usage requirements, thus limiting the degree of flexibility that could household or small group critical technology driver of flexible payment plans. Just as important, be offered (World Bank 2014). It is not enough, as is the case with of households.” however, is better understanding among energy providers of what mobile telephony, to simply add new customers to compensate for customers have been paying for substitutes for electricity and thus low usage of existing users, because each new user requires a new how much—and in what increments—they might be willing to pay and substantial investment (connection costs). for a cleaner and safer alternative. With this information, providers can also estimate demand for their services. How has the industry evolved to date? It is not clear whether energy companies can fully replicate the characteristics of the successful pay-as-you-go models used by The off-grid energy industry sees pay-as-you-go mobile telephone operators, in particular the flexibility of customer as a promising path to expansion payments. The pay-as-you-go model, as applied in mobile telephony, Interviews with 11 off-grid energy companies suggest that the indus- offers customers maximum control over the timing and the amount try views pay-as-you-go payment models as an important element of their payments. Phone owners buy credit to use their phone in an in scaling up services—and particularly for attracting customers amount of their choosing (with a wide range of available increments), with low and irregular incomes. The companies sampled represent use the phone for that particular amount of minutes or messages, a range of technologies, payment plans, and geographic locations and refill their credit whenever and by however much they want with a focus on Africa, where the energy access gap is the largest or can afford. Usage requirements are minimal, and purchased and where off-grid solutions are expected to play an important credits can be used over long (sometimes indefinite) periods of time. role to close this gap. Of the companies interviewed, 10 use some Customers are never required to pay more than they can afford at form of pay-as-you-go plan. The exception, India’s Mera Gao Power any given time. (MGP), does not yet use smart meters and thus cannot effectively Flexible payments in mobile telephony were made possible by implement pay-as-you-go. MGP was included in the assessment relatively low user-specific costs—that is, the costs occasioned by for purposes of comparison and because it might be a candidate a specific consumer. The lack of dedicated costs associated with 3 S c a l i n g U p A c c e ss t o E l e c t r i c i t y : Pay- as - Y o u - G o P l a n s i n O f f - G r i d E n e r g y S e r v i c e s Figure 1. Payment flexibility among 11 off-grid energy companies Mini- and micro-grids EarthSpark International PAYG through scratch cards SharedSolar PAYG through agent “Pay-as-you-go means Devergy MGP choice between fixed different things to different strict weekly payments, daily, weekly, monthly Powerhive fixed price payments or truly PAYG PAYG through mobile money companies. Although some Least Flexible Most Flexible (micro- and mini-grids only) offer complete flexibility Simpa Networks Fenix International Azuri pay for at least 25 days/ pay any amount any time, weekly payments; at least one on when and how much month, 2-year contract clear expectation to repay payment every six months in 18 months) customers can pay, most OMC Power M-KOPA Solar pay monthly or weekly impose restrictions on pay any amount any time, clear expectation to repay the timing and size of in 12 months payments. Some require Off.grid: Electric pay for any period you customers to make weekly choose, one cumulative month of nonpayment or monthly payments, and allowed during a 12-month period Solar home systems in some cases customers must pay a total amount over a predetermined for highly flexible payment plans if it eventually adopts the requisite operates a smart-metered micro-grid in Haiti and has the most period of time. “ technology. flexible model of all those studied, imposes no minimum payment Pay-as-you-go means different things to different companies. requirements or service use restrictions. Customers can buy elec- Although some (micro- and mini-grids only) offer complete flexibility tricity credits from a local agent at any time or by using their mobile on when and how much customers can pay, most impose restric- phone. EarthSpark’s smart-meter technology enables the company tions on the timing and size of payments. Some require customers to quickly shut off a user’s electricity supply, yielding a cost structure to make weekly or monthly payments, and in some cases customers that approaches that of mobile telephony. must pay a total amount over a predetermined period of time. In Africa, customers of SharedSolar purchase account credit in Some companies also limit the amount of energy that a customer various denominations from a locally appointed vendor. Customers can purchase within a particular period. And while almost all of the can purchase as much credit as they want, although their energy providers investigated offer more payment flexibility than traditional use is restricted by a maximum power limit and maximum daily utility companies, most plans are considerably more constrained consumption limit, both controlled by smart-metering technology. than those offered to mobile telephone customers. A mixed model is offered by Devergy, which provides micro-grids Mini- and micro-grids. Of the cases studied, the most flexible in Tanzania and offers users a choice between fixed daily, weekly, or payment arrangements were offered by the mini- and micro-grid monthly payments, or a true pay-as-you-go model. However, there is providers, which did not oblige customers to buy a set number of a limit to the energy that can be used by each household. days of service or a particular amount of energy. EarthSpark, which 4 S c a l i n g U p A c c e ss t o E l e c t r i c i t y : Pay- as - Y o u - G o P l a n s i n O f f - G r i d E n e r g y S e r v i c e s MGP in India, which makes electricity from direct-current micro- system is unlocked for the prepaid number of days. Customers face grids available to the poorest segment of customers, represents no restrictions on how much they must pay at any given time, as the opposite end of the spectrum, expecting customers to make long as they pay the required total within 18 months. payments every week. The amount of energy that can be purchased Similarly, M-KOPA Solar expects customers to pay the full cost is restricted. Each household receives an electricity package that is of their system in 12 months, based on daily pricing. Customers can “All of the providers of solar sufficient to power two light bulbs and a phone charger for seven pay any amount they choose at any time. Like Fenix International, home systems imposed at hours a night. Customers are free to unsubscribe at any time, but M-KOPA offers a grace period to customers who fail to pay for their they must pay regularly to maintain access to the service. system within the agreed time. least some conditions on Solar home systems. The six providers of solar home systems Simpa Networks, M-KOPA Solar, and Fenix International all have payments, with most that we examined offer flexible payments for energy systems ranging the ability to switch off the device remotely as soon as the prepaid specifying a total payment from individual solar lanterns to large, multi-household PV panels.2 amount is used up, thus incentivizing the user to make the next amount over a given period Their varied business models can be divided into two categories: (i) payment. of time.” the lease-to-own model, in which ownership of the system passes A slightly different approach is offered by Off.grid:Electric, which to a household once an agreed price is paid; and (ii) a micro-utility offers solar home systems in Tanzania under the utility business model, in which the company provides electricity but retains model, never transferring ownership to the end user. Customers are ownership of the equipment that produces it. Pay-as-you-go plans required to pay for at least 11 months of service in any given year, under both models set fees based on users’ consumption. All of the but those 11 months may be split up at the customer’s discretion, providers of solar home systems imposed at least some conditions and payments can be made in any size and at any time. Customers on payments, with most specifying a total payment amount over who have not made a payment for a certain time are contacted to a given period of time. Such a requirement is particularly under- see if they have a problem or would like the system removed. If the standable under the lease-to-own model used by M-KOPA Solar, customer persists in not paying, the system is removed and offered Simpa Networks, Azuri, and Fenix International, where customer to another household. payments are applied toward purchase of the system. Under the Yet another variant is offered by Azuri, which provides solar lease-to-own model, users must pay enough to cover the cost of the home systems in East Africa. Azuri does not require any fixed system. In other words, costs are entirely user-specific (unless the schedule of payments as long as at least one payment is made every unit is transferred to another user, which appears to be rare), and six weeks. Service can be purchased in increments of one week or the company cannot recoup losses from one user through the extra longer. Once the system is paid off, the customer can upgrade to a usage of another. larger system. Customers of Simpa Networks in India sign two-year contracts. OMC Power rents lanterns and battery boxes to their customers Payments are calculated on a daily basis, and customers are obliged in India. Depleted lanterns are collected for recharge and redistrib- to buy at least 25 days’ worth of service every month, though they uted to prepaid customers. OMC requires customers to pay a fixed can choose how they want to distribute their payments over time. monthly or weekly payment, although they can discontinue service A more flexible model is offered by Fenix International, which at any time. asks their customers to pay the full cost of their device over an The surveyed companies are summarized in table 1. 18-month period. Once a payment is made for a period of use, the 2 There are important differences between services, but for the purposes of this note they are grouped into a single category as they are all individual household systems. 5 S c a l i n g U p A c c e ss t o E l e c t r i c i t y : Pay- as - Y o u - G o P l a n s i n O f f - G r i d E n e r g y S e r v i c e s Table1. Characteristics of off-grid energy companies interviewed for this note Company Business (location, years in Technology Description model operation) EarthSpark Non-profit solar/diesel micro-grid provider in Les Anglais urban area using Sparkmeter technology Continuous International AC micro-grid developed in-house. Small installation fee and top-ups using prepaid scratch cards or mobile phone. “All of the companies (Haiti; since 2012) service www.earthsparkinternational.org surveyed are extremely SharedSolar Scalable micro-grid provider using software developed at Earth Institute (Columbia University). Continuous positive about the (Senegal, Mali; AC micro-grid service Small installation fee. Customers prepay for service at time and in amount of their choosing. As since 2011) demand grows over time, capacity can be added. sharedsolar.org payment patterns they MGP Solar DC micro-grid provider targeting the poorest customers. From a small generation point, MGP experienced to date. … Continuous (India; founded in DC micro-grid provides a fixed amount of electricity: 7 hours per night for two light-bulbs and a phone charger. No service 2010) smart metering. Payments are collected weekly in cash. meragaopower.com What is now required, … AC micro-grid provider using a cloud-based software platform (HoneyComb m-Power OS) that is clear evidence of regular Powerhive Continuous tracks and manages power-generating assets, provides real-time data and analytics as well as (Kenya; founded in AC micro-grid payments on a larger scale. 2011) service prepaid billing via mobile money services, enabling remote control of the micro-grid. Several payment plans available, including pay as you go. powerhive.com Smart-metering could Solar DC micro-grid provider aiming to serve basic needs, such as lighting and phone charging. prove useful in amassing Devergy When connecting a new village, Devergy installs solar panels and batteries and a meter in the home Continuous (Tanzania, Ghana; DC micro-grid or small business (usually one solar tripod for 5–10 houses). Software developed in-house allows such evidence.” service since 2010) for remote monitoring and control of electricity use in each home. Customers top up using prepaid cards. www.devergy.com M-KOPA Solar Asset financing company providing solar home systems for lighting and phone charging, with a Solar home (Kenya; established Lease to own more expensive option to power a chargeable radio. Down payment and pay off within 12 months systems in 2011) via mobile phone payments. www.m-kopa.com Simpa Networks Solar home Solar PV system provider. Down payment followed by prepaid service, with customers topping up at (India; founded in Lease to own systems their discretion via mobile phone. Full payment expected within two years. simpanetworks.com 2010) Azuri Provider of solar home systems. Upfront fee followed by installation of solar panels. Customers Technology (East Africa; Lease to own prepay for service using scratch cards. Upon full payment, the system unlocks permanently, and provider founded in 2012) ownership transfers to customer. www.azuri-technologies.com Solar power system includes a solar panel, smart battery, and a range of lights and phone-charging Fenix International Solar home accessories. Larger kits include radio or TV. Customers pay via mobile phone and receive secure (Uganda; launched Lease to own systems code to unlock access to power until another payment is due. Pay-off expected within 18 months. ReadyPay in 2013) www.fenixintl.com OMC Power Company charges lanterns and power boxes that can run a few lights and appliances. Solar Continuous (India; founded in Solar lanterns lanterns delivered to paying customers’ homes twice a day. Company also operates mini-grid service 2011) powering mobile phone towers connected by cable. www.omcpower.com Operates like an electricity utility. A small solar system, complete with appliances, is installed in Off.Grid: Electric Solar home Continuous customer’s home. Customers prepay weekly for service via mobile phone. Choice of electrical (Tanzania; founded systems service services, from basic lights and mobile charger to radio or TV. Ownership of solar systems remains in 2012) with company. offgrid-electric.com 6 S c a l i n g U p A c c e ss t o E l e c t r i c i t y : Pay- as - Y o u - G o P l a n s i n O f f - G r i d E n e r g y S e r v i c e s What have we learned so far? Box 1. Steps to improve the reliability of the customer base The degree of payment flexibility offered by off-grid energy providers reflects their circumstances Off-grid energy companies can increase customer reliability The pay-as-you go payment plans offered by off-grid energy provid- through educational marketing, prescreening, customer “Ultimately, few energy ers are not as flexible as those that spurred the spread of mobile monitoring, and down payments. companies can offer telephones, possibly because mini-grids and solar home systems • Educational marketing. Customers who understand the nearly always have higher user-specific costs than do mobile phone benefits of modern energy services (including cost savings payment plans that operators. Instead, companies often limit the degree of payment over candles or kerosene) are more likely to make the afford customers flexibility they offer based on their individual circumstances and switch from their existing energy sources. complete control over business model. • Prescreening. Many providers pre-screen customers for the size and timing of EarthSpark, which services a densely populated town in Haiti payment risk. Simpa Networks has a rigorous customer and is able to minimize the user-specific costs of its network, offers their expenditures. But screening process that involves an extensive questionnaire the most flexible payment option of the companies we investigated. customers may not require and a scoring system. The company is working on a model Most of the lease-to-own providers of solar home systems can offer that will be able to predict good, reliable customers. full flexibility.” a good deal of flexibility in the timing of payments as long a specified total payment is made within a set period of time. (The company • Customer monitoring. Technology is enabling companies must be able to predict when it will recover the cost of the asset.) to analyze individual customers’ consumption patterns. OMC Power, which does not provide an asset to finance, can offer Once the sample reaches a significant size and covers a household customers a certain degree of payment flexibility thanks long enough period, companies will be able to hone their to a power purchase agreement with an anchor customer that guar- ability to identify good customers. Data that provides an antees a minimum steady revenue stream. MGP , on the other hand, understanding of customers’ behavior builds confidence in is severely constrained in the flexibility it can offer because it does the financial sector. not use smart meters and thus cannot switch its customers’ power • Down payments. Customers of solar home systems are on or off at will. MGP has opted for a DC wiring system, however, required to provide a down payment. In the mini-grid which results in much lower user-specific costs than traditional AC business, customers pay an installation fee. Customers who wiring; once it moves to smart meters, it will be in a good position to make an upfront payment are making an investment and are offer very flexible payments. more likely to make future payments. Ultimately, few energy companies can offer payment plans that afford customers complete control over the size and timing of their expenditures. But customers may not require full flexibility. Unlike capital-intense business, and fully flexible payment models may not in the case of mobile phones, customers do not need to set aside be able to guarantee the continuous cash flow that financiers like to additional funds to purchase the new service, because most are see. For flexible payment models to be a viable business option for converting existing kerosene expenditures to pay for off-grid elec- energy companies, companies must be able to demonstrate a reli- tricity. Small payments and some flexibility to account for unforeseen able revenue stream that is sufficient to cover their costs, including circumstances may be sufficient to attract their interest. those specific to individual users. For companies that allow some flexibility in their payment The emerging experience in this regard is promising. All of the models, a key risk is that they will not be able to ensure a revenue companies surveyed are extremely positive about the payment pat- stream that is large and steady enough to attract long-term terns they experienced to date. All report very low rates of default, financing. Proving the security of future cash flows is critical to any and none identified payment recovery as a primary area of concern. 7 S c a l i n g U p A c c e ss t o E l e c t r i c i t y : Pay- as - Y o u - G o P l a n s i n O f f - G r i d E n e r g y S e r v i c e s For example, Simpa Networks estimates that true default (when the References Make further customer no longer wants to use the solar home system) occurs in IEA (International Energy Agency). 2011. Energy for All: Financing connections less than one in a hundred cases. Fenix Technologies reports very Access for the Poor. Special early excerpt of the World Energy strong portfolio performance. Azuri, which does not impose a period Outlook 2011. Paris. http://www.iea.org/media/weowebsite/ Live Wire 2014/9. “Tracking within which the system must be repaid, nonetheless sees very energydevelopment/weo2011_energy_for_all.pdf. Access to Electricity,” by regular payments. EarthSpark, which has the most flexible payment IFC (International Finance Corporation). 2013. From Gap to Sudeshna Ghosh Banerjee and model of all companies investigated, reports continuous payments Opportunity: Business Models for Scaling Up Energy Access. Elisa Portale. from its customers. Washington, DC. Because much of the off-grid industry is new and may have Live Wire 2014/16. “Capturing Kalba, Kas. 2008: “The Global Adoption and Diffusion of Mobile built their initial customer base from those customers most able to the Multi-Dimensionality of Phones.” Program on Information Resources Policy, Harvard pay, it is too early to conclude that companies will be able to reach Energy Access,” by Mikul Bhatia University and Center for Information Policy Research. http:// significant numbers of new low-income customers without increas- and Nicolina Angelou. www.pirp.harvard.edu/pubs_pdf/kalba/kalba-p08-1.pdf. ing the flexibility of their payment models. One of the key benefits of Rouvinen, Petri. 2004. “Diffusion of Digital Mobile Telephony: Are flexible payment models in mobile telephony is that new customers Live Wire 2014/20. “Scaling Up Developing Countries Different?” ETLA Discussion Paper 901, can try the service at very little cost, and many who might otherwise Access to Electricity: The Case Research Institute of the Finnish Economy, Helsinki. http://www. not have qualified (or not have considered a large expenditure on an of Lighting Africa,” by Daniel etla.fi/wp-content/uploads/2012/09/dp901.pdf. unknown service) became reliable customers. By contrast, some of Murphy and Arsh Sharma. World Bank. 2014. “The Potential for Alternative Private Supply (APS) the steps that energy companies are using to increase the reliability of Power in Developing Countries.” World Bank Group Trade and Live Wire 2014/21. of payments—particularly the prescreening of customers (box 1)— Competitiveness Practice, Washington, DC. June. https://www. “Understanding the may exclude the very low-income users that flexible payments were wbginvestmentclimate.org/advisory-services/private-participa- Development Impacts of designed to attract. tion/infrastructure/upload/APS_Report_June_2014.pdf. Energy Access: The Case of If customers do continue to sign up and make regular payments, Bangladesh,” by Zubair Sadeque, however, energy service providers will be able to demonstrate their The peer reviewers for this Live Wire were Mohua Mukherjee (senior Dana Rysankova, Raihan Elahi, viability. What is now required, in order to secure long-term financing energy specialist in the World Bank’s Energy and Extractives Global and Ruchi Soni. at competitive rates, is clear evidence of regular payments on a Practice) and Pepukaye Bardouille (senior operations officer, IFC). The larger scale. Smart-metering could prove useful in amassing such Live Wire 2014/22. authors thank Vivien Foster, Morgan Bazilian, Dana Rysankova, and evidence, as many off-grid companies maintain detailed records of “Understanding the Ruchi Soni (all of the Bank’s Energy and Extractives Global Practice) customer usage and payments that could be analyzed to assess Development Impacts of Energy for their helpful suggestions and inputs. payment reliability for different technologies and business models. Access: The Case of Rwanda,” This is a rich topic for future investigation. by Paul Baringanire, Kabir Malik, and Sudeshna Ghosh Banerjee. Live Wire 2014/35. “Planning for Electricity Access,” by Debabrata Chattopadhyay, Rahul Kitchlu, and Rhonda Lenai Jordan. 8 S c a l i n g U p A c c e ss t o E l e c t r i c i t y : Pay- as - Y o u - G o P l a n s i n O f f - G r i d E n e r g y S e r v i c e s Get Connected to Live Wire Live Wires are designed for easy reading on the screen and for downloading The Live Wire series of online knowledge notes is an initiative of the World Bank Group’s Energy and self-printing in color or “Live Wire is designed and Extractives Global Practice, reflecting the emphasis on knowledge management and solu- black and white. tions-oriented knowledge that is emerging from the ongoing change process within the Bank for practitioners inside Group. For World Bank employees: and outside the Bank. 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Once a year, the Energy and Extractives Global Practice takes stock of all notes that appeared, reviewing their quality and identifying priority areas to be covered in the following year’s pipeline. e Pa c i f i c 2014/28 ainable energy for all in easT asia and Th 1 Tracking Progress Toward Providing susT http://www.worldbank.org/energy/livewire A KNOWLEDGE NOTE SERIES FOR THE ENERGY & EXTRAC TIVES GLOBAL PRACTICE THE BOTTOM LINE Tracking Progress Toward Providing Sustainable Energy where does the region stand on the quest for sustainable for All in East Asia and the Pacific 2014/29 and cenTral asia energy for all? in 2010, eaP easTern euroPe sT ainable en ergy for all in databases—technical measures. This note is based on that frame- g su v i d i n had an electrification rate of Why is this important? ess Toward Pro work (World Bank 2014). SE4ALL will publish an updated version of 1 Tracking Progr 95 percent, and 52 percent of the population had access Tracking regional trends is critical to monitoring the GTF in 2015. to nonsolid fuel for cooking. the progress of the Sustainable Energy for All The primary indicators and data sources that the GTF uses to track progress toward the three SE4ALL goals are summarized below. consumption of renewable (SE4ALL) initiative C T I V E S G L O B A L P R A C T I C E ENERGY & EXTRA • Energy access. Access to modern energy services is measured T E S E R I E S F O R T H EIn declaring 2012 the “International Year of Sustainable Energy for energy decreased overall A KNO W L E D G E N Oand 2010, though by the percentage of the population with an electricity between 1990 All,” the UN General Assembly established three objectives to be connection and the percentage of the population with access Energy modern forms grew rapidly. d Providing Sustainable accomplished by 2030: to ensure universal access to modern energy energy intensity levels are high to nonsolid fuels.2 These data are collected using household Tracking Progress Towar services,1 to double the 2010 share of renewable energy in the global surveys and reported in the World Bank’s Global Electrification but declining rapidly. overall THE BOTTOM LINE energy mix, and to double the global rate of improvement in energy e and Central Asia trends are positive, but bold Database and the World Health Organization’s Household Energy for All in Eastern Europ efficiency relative to the period 1990–2010 (SE4ALL 2012). stand policy measures will be required where does the region setting Database. The SE4ALL objectives are global, with individual countries on that frame- on the quest for sustainable to sustain progress. is based share of renewable energy in the their own national targets databases— technical in a measures. way that is Thisconsistent with the overall of • Renewable energy. The note version energy for all? The region SE4ALL will publish an updated their ability energy mix is measured by the percentage of total final energy to Why is this important ? spirit of the work initiative. (World Bank Because2014). countries differ greatly in has near-universal access consumption that is derived from renewable energy resources. of trends is critical to monitoring to pursue thetheGTF in 2015. three objectives, some will make more rapid progress GTF uses to Data used to calculate this indicator are obtained from energy electricity, and 93 percent Tracking regional othersindicators primary will excel and data sources that elsewhere, depending on their the while the population has access le Energy for All in one areaThe goals are summarized below. balances published by the International Energy Agency and the the progress of the Sustainab respective track starting progress pointstowardand the three SE4ALL comparative advantages as well as on services is measured to nonsolid fuel for cooking. access. Accessthat they modern to are able to energy marshal. United Nations. despite relatively abundant (SE4ALL) initiative the resources and support Energy with an electricity connection Elisa Portale is an l Year of Sustainable Energy for To sustain percentage of by the momentum forthe the population achievement of the SE4ALL 2• Energy efficiency. The rate of improvement of energy efficiency hydropower, the share In declaring 2012 the “Internationa energy economist in with access to nonsolid fuels. three global objectives objectives, andathe means of charting percentage of the population global progress to 2030 is needed. is approximated by the compound annual growth rate (CAGR) of renewables in energy All,” the UN General Assembly established the Energy Sector surveys and reported access to modern universalAssistance The World TheseBank and data are the collected International using household Energy Agency led a consor- of energy intensity, where energy intensity is the ratio of total consumption has remained to be accomplished by 2030: to ensure Management Database and the World of theenergy intium of 15 renewable international in the World Bank’s Global agencies toElectrification establish the SE4ALL Global primary energy consumption to gross domestic product (GDP) energy the 2010 share of Program (ESMAP) relatively low. very high energy services, to double Database. measured in purchasing power parity (PPP) terms. Data used to 1 t ’s Household provides Energy a system for regular World Bank’s Energy the global rate of improvemen and Extractives Tracking Framework Health (GTF), which Organization in the energy intensity levels have come and to double the global energy mix, Global Practice. (SE4ALL 2012). based on energy. of renewable The sharepractical, rigorous—yet energy given available calculate energy intensity are obtained from energy balances to the period 1990–2010 global reporting, Renewable down rapidly. The big questions in energy efficiency relative setting by the percentage of total final energy consumption published by the International Energy Agency and the United evolve Joeri withde Wit is an countries individual mix is measured Data used to are how renewables will The SE4ALL objectives are global, economist in with the overall from renewable energy when every resources. person on the planet has access Nations. picks up a way energy that is consistent 1 The universal derived that isaccess goal will be achieved balances published when energy demand in from energy their own national targets through electricity, clean cooking fuels, clean heating fuels, rates the Bank’s Energy and countries differ greatly in their ability calculate this indicator are obtained to modern energy services provided productive use and community services. The term “modern solutions” cookingNations. again and whether recent spirit of the initiative. Because Extractives Global rapid progress and energy for Energy Agency and the United liquefied petroleum gas), 2 Solid fuels are defined to include both traditional biomass (wood, charcoal, agricultural will make more by the refers to solutions International that involve electricity or gaseous fuels (including is pellets and briquettes), and of decline in energy intensity some t of those of efficiency energy and forest residues, dung, and so on), processed biomass (such as to pursue the three objectives, Practice. depending on their or solid/liquid fuels paired with Energy efficiency. The rate stoves exhibiting of overall improvemen emissions rates at or near other solid fuels (such as coal and lignite). will excel elsewhere, rate (CAGR) of energy will continue. in one area while others liquefied petroleum gas (www.sustainableenergyforall.org). annual growth as well as on approximated by the compound and comparative advantages is the ratio of total primary energy respective starting points marshal. where energy intensity that they are able to intensity, measured in purchas- the resources and support domestic product (GDP) for the achievement of the SE4ALL consumption to gross calculate energy intensity Elisa Portale is an To sustain momentum terms. Data used to charting global progress to 2030 is needed. ing power parity (PPP) the International energy economist in objectives, a means of balances published by the Energy Sector International Energy Agency led a consor- are obtained from energy The World Bank and the SE4ALL Global Energy Agency and the United Nations. Management Assistance agencies to establish the the GTF to provide a regional and tium of 15 international for regular This note uses data from Program (ESMAP) of the which provides a system for Eastern Tracking Framework (GTF), the three pillars of SE4ALL World Bank’s Energy and Extractives on rigorous—yet practical, given available country perspective on Global Practice. global reporting, based has access Joeri de Wit is an will be achieved when every person on the planet The universal access goal heating fuels, clean cooking fuels, clean energy economist in 1 agricultural provided through electricity, biomass (wood, charcoal, to modern energy services The term “modern cooking solutions” to include both traditional and briquettes), and Solid fuels are defined the Bank’s Energy and use and community services. biomass (such as pellets 2 and energy for productive petroleum gas), and so on), processed fuels (including liquefied and forest residues, dung, involve electricity or gaseous at or near those of Extractives Global refers to solutions that overall emissions rates other solid fuels (such as coal and lignite). with stoves exhibiting Practice. or solid/liquid fuels paired (www.sustainableenergyforall.org). liquefied petroleum gas