2014/16 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 Capturing the Multi-Dimensionality of Energy Access The multi-tier approach to measuring energy access proposed in the SE4ALL Why is this issue important? in terms of unscheduled outages or voltage levels. In addition, Global Tracking Framework comprehensive data may lead to a better assessment of the linkages of 2013 introduces a five-tier Rapid expansion of access to energy requires both between energy access and energy poverty1 by evaluating, for measurement methodology accurate assessment and tracking of progress example, the impact of a solar home system project on the rate of based on various energy access to information and entertainment through television. Access to energy has gained significant interest from governments attributes, such as quantity, and development agencies, particularly since the call for Sustainable quality, affordability, and Energy for All (SE4ALL) by the Secretary General of the United Nations What does access to energy mean? duration of supply. The approach in 2012. One of the key goals of SE4ALL is to achieve “universal A full definition of energy access must be makes it possible to compute access to modern energy services by 2030” (SE4ALL 2012). Achieving a weighted index of access to that goal will require a concerted international effort, substantial new multi-dimensional energy for a given geographical investment, the deployment of new technologies, and a wide range There are two initial challenges in defining and measuring energy area. Separate notes focusing of interventions targeted on underserved populations. access: the absence of a universal definition of energy access and on multi-tier measurement of The success of such interventions depends in part on the the difficulty of measuring any definition in an accurate manner. Such energy access for households, ability to assess the level of access to energy—both planning and difficulty lies within the multi-dimensional nature of access to energy. productive enterprises, and investment, and, later, for monitoring of progress. Detailed baseline For example, multiple sources of energy, delivered through a range community institutions will data can help support policy formulation, investment strategies, of diverse technologies, across grid-based and off-grid systems, extend the application of the and project design, as well as better ex ante estimation of the likely need to be captured (IEA 2012). Also, energy is used in a wide new approach. impact of projects on access. For example, baseline data may reveal spectrum of applications, ranging from lighting to communication that a high proportion of the population in an area has 24 hours per and entertainment, air circulation, refrigeration, cooking, heating, and day of electricity but suffers from frequent unscheduled outages; so on. The practice of “fuel stacking”—the parallel use of multiple Mikul Bhatia is a senior or that most households use liquefied propane gas (LPG) as their fuels, particularly for cooking—complicates data capture because it energy specialist in the primary cooking fuel, but often use charcoal because of frequent goes beyond the simple concept of an “energy ladder” and because World Bank’s Energy shortages of LPG cylinders. data on simultaneous use of multiple energy sources are scarce Practice (mbhatia2@ Regular and sustained data collection can also be used to eval- (Davis 1998; Heltberg 2004; Masera, Diaz, and Berrueta 2005). Finally, worldbank.org). uate how well a given project has done in improving energy access. energy is not only needed at the household level but is also essential Nicolina Angelou is It can help utilities to become more accountable and transparent an energy economist by comparing household survey data with utility data, for example, 1 Energy poverty is defined here as being deprived of certain energy services that fulfill in the same practice basic human needs in a healthy, convenient, and efficient manner. (nangelou@worldbank. org). 2 C a p t u r i n g t h e M u lt i - D i me n s i o n al i t y o f E n e r g y A ccess Figure 1. Binary versus multi-tier measurement by round-the-clock power, or are four hours per day of electricity sufficient? Likewise, what would qualify a house- Tier 1 hold as having access to modern cooking solutions? Should every house- hold be cooking with nonsolid fuels “Access is defined as the Tier 0 such as LPG or electricity? What about Tier 2 ability to obtain energy No access Access improved cookstoves that use solid that is adequate, available fuels and that are as clean and efficient as those using nonsolid fuels? Is any when needed, reliable, of Tier 5 Tier 3 amount of time and effort involved in good quality, affordable, Tier 4 collecting fuel considered acceptable? legal, convenient, healthy, How do tariffs figure in the equation? In and safe for all required other words, does energy have to meet Binary Multi-tier an affordability standard before being Source: ESMAP 2014. energy applications counted toward universal access? How across households, should energy access be measured in productive enterprises, and for productive enterprises in every sector (EUEI 2011), as well as productive enterprises or community institutions? for community institutions (such as schools, hospitals, and public community institutions.” All of these questions can be addressed by a more comprehen- buildings) (Cabraal, Barnes, and Agarwal 2005). sive definition of energy access. To date, access to electricity has typically been measured as having a household electrical connection, while access to modern cooking solutions has been measured as cooking with clean nonsolid What is the new approach? fuels.2 The first SE4ALL Global Tracking Framework report released Energy access is measured across five tiers and eight in May 2013 used such binary metrics to determine starting points attributes of energy against which progress toward universal energy access can be measured, as available data did not generally allow for a more Any new approach to defining and measuring energy access should elaborate measure (Banerjee and others 2013). These binary metrics, be technology-neutral (Bazilian and others 2010). That is, it should although convenient, fail to capture the multidimensional nature of assess all energy sources fairly—from solar lanterns to power plants, energy access. from improved cookstoves to natural gas distribution. Ideally, it Would the SE4ALL goal be deemed achieved if every household should reflect the impact of all energy interventions—from gener- had electric lighting? Or should every household own a television ation to transmission and distribution, as well as pricing reforms as well? What about a refrigerator? Is energy access to be defined and energy efficiency regulations. Energy applications should be kept at the core of the approach in order to be meaningful to users. The approach should be applicable not only to households but to 2 Nonsolid fuels include (i) liquid fuels (for example, kerosene, ethanol, or other biofuels), (ii) gaseous fuels (such as natural gas, LPG, and biogas), and (iii) electricity. Solid fuels include (i) productive enterprises and community institutions as well. Finally, traditional biomass (for example, wood, charcoal, agricultural residues, and dung), (ii) processed it should also allow a diverse range of data to be compiled into an biomass (such as pellets and briquettes, and (iii) other solid fuels (such as coal and lignite). index while identifying specific deficiencies of the energy supply. 3 C a p t u r i n g t h e M u lt i - D i me n s i o n al i t y o f E n e r g y A ccess Such an approach to energy access has now been developed the United Nations Secretary General’s Advisory Group on Energy by the World Bank/ESMAP in consultation with a host of devel- and Climate Change (AGECC 2010), the Energizing Development opment agencies and programs, including EnDev, Lighting Africa, (EnDev) program (EnDev 2011), Poor People’s Energy Outlook Practical Action, The Global Alliance for Clean Cookstoves, the (Practical Action 2010 ), and the Global Alliance for Clean Cookstoves UN Development Programme, the UN Industrial Development (PCIA 2012). This concept has now been further developed under Organization, the World Bank, and the World Health Organization. an ESMAP-financed activity at the World Bank called Defining and “In the multi-tier approach Under the approach, access is defined as the ability to obtain energy Measuring Access to Energy for Socio-Economic Development. to measuring access to that is adequate, available when needed, reliable, of good quality, A summary of the emerging multi-tier framework that builds on the energy, tiers are defined affordable, legal, convenient, healthy, and safe for all required energy earlier attempts is presented here. applications across households, productive enterprises, and commu- In the multi-tier approach to measuring access to energy, tiers based on a combination of nity institutions (ESMAP 2014). are defined based on a combination of attributes that reflect the attributes that reflect the Based on this definition, a new measurement methodology has performance of the energy supply. A simplified matrix of tiers and performance of the energy been devised around multiple tiers of energy usability (figure 1). The attributes is presented in table 1. Specialized matrices for household supply…. Each tier reflects basic idea behind multi-tier approaches was initially proposed by electricity, cooking, and heating, and for productive enterprises and the ability of the energy supply to cater to specific Table 1. Simplified multi-tier matrix of energy access energy applications.” Attributes of energy supply Tier 0 Tier 1 Tier 2 Tier 3 Tier 4 Tier 5 Household electricity No electricity a Very low power Low power Medium power High power Capacity Adequate capacity of the primary Household cooking Inadequate capacity of the primary cooking solution cooking solution Household electricity <4 hours 4–8 hours 8–16 hours 16–22 hours >22 hours Duration and availability Adequate availability of the Household cooking Inadequate availability of the primary cooking solution primary cooking solution Reliability Household electricity Unreliable energy supply Reliable energy supply Household Quality Poor quality of energy supply Good quality of energy supply electricity/cooking Household electricity Unaffordable energy supply Affordable energy supply Affordability Household cooking Unaffordable energy supply Affordable energy supply Legality Household electricity Illegal energy supply Legal energy supply Time and effort spent sourcing energy Time and effort spent sourcing energy Convenience Household cooking cause inconvenience do not cause inconvenience Household electricity Unhealthy and unsafe energy system Healthy and safe energy system Health and safety Household cooking b Level 0 Level 1 Level 2 Level 3 Level 4 Level 5 Source: World Bank/ESMAP (forthcoming 2014). a. The detailed multi-tier matrix for household electricity considers a continuous variable between tier 0 and tier 1 for basic lighting services so as to capture the contribution of solar lamps that do not reach the minimum output threshold required for tier 1 access but that are highly affordable and enable households to reduce or eliminate the use of kerosene for lighting. b. Levels are defined based on the technical performance of the cookstove (for example, in terms of efficiency, pollution, and safety), kitchen ventilation, and conformity of usage (use of required accessories, regular cleaning, and so on.) 4 C a p t u r i n g t h e M u lt i - D i me n s i o n al i t y o f E n e r g y A ccess community institutions, will be presented in follow-on briefs in the Such supply-side evaluations help estimate the impact that proj- Live Wire series. ects or programs may claim to have or may have had in a selected Depending on the attribute, indicators may be binary (yes or no) area. They can be performed more quickly and cheaply than surveys or have multiple thresholds (gradations). Once every attribute has of actual energy availability and use. However, they must be validated been assessed, the overall tier for the household, the enterprise, or by periodic demand-side surveys, which more accurately reflect the the community institution is calculated by applying the lowest tier actual level of access in a given area. “The type of data of any of the attributes. For example, with reference to table 1, if a required for a multi-tiered household reliably and legally obtains electricity of adequate wattage What results does the multi-tier framework yield? assessment of energy for 12 hours each day but that electricity is not affordable, access tier for that household remains in tier 2. “Energy access diagnostics” deliver disaggregated access in a given area Each tier reflects the ability of the energy supply to cater to spe- data analysis and an access index would have to be obtained cific energy applications. For example, with reference to electricity for Under the new multi-tier framework, data from energy surveys are through surveys of actual households, tier 1 encompasses basic lighting and phone charging, compiled and analyzed to produce an energy access diagnostic for energy availability and use whereas tier 2 includes a television and electric fan. In tier 3, the a given area. The diagnostic includes an in-depth disaggregated data among a scientific sample use of light and discontinuous thermal or mechanical applications is analysis and an aggregate analysis comprising a series of indices of made possible (such as washing machines or food processors), while energy access. of all users in a given tiers 4 and 5 enable heavier and continuous applications, such as category.” air-conditioning and space heating. Figure 2.  Weighting of tiers to arrive at an index of access to energy Where do the data come from? Energy surveys are an essential data-collection tool 30% The type of data required for a multi-tiered assessment of energy 20% 20% access in a given area would have to be obtained through surveys 10% 10% 10% of actual energy availability and use among a scientific sample of all users in a given category (households, enterprises, community 0 1 2 3 4 5 institutions). Survey questionnaires would elicit information about each energy attribute, and the results would be fed into the multi-tier matrices. Data may also be collected from energy suppliers to indicate the tiers of access that specific projects may deliver to a targeted population. Such supply-side assessments of energy access are based mainly on the specifications of delivered assets (for example, the capacity of a solar home system or the efficiency of a cookstove). Complementary research into the local context (household income 2.2 levels, fuel collection time, fuel shortages, and so on) may be carried Weighted index of access out through focus groups or small-sample surveys to round out the information on the rest of the attributes. Source: ESMAP 2014. 5 C a p t u r i n g t h e M u lt i - D i me n s i o n al i t y o f E n e r g y A ccess Figure 3. Indices of energy access for households, enterprises, and community institutions Overall energy access index “A simple energy access Index of household Index of access to energy Index of access to energy index can be calculated access to energy for productive uses for community uses by weighting the tiers and arriving at a weighted Household Household Household Street Health Education Community Public average. The index electricity cooking heating lighting facilities facilities buildings offices index index index index index index index index evaluates both the extent of access and its intensity.” Source: ESMAP 2014. Data from questions related to the performance of the energy can provide useful inputs for policy formulation, project design, utility supply are used to assess deficiencies in various energy attributes. performance accountability, regulatory processes, and evaluations of For example, among the various indicators for household electricity project impact. that can be calculated are: (i) the proportion of households con- To compile the information captured by the multi-tier matrix nected to the grid, (ii) the proportion of legal connections, (iii) the pro- into a single number representing the level of energy access across portion of people receiving electricity in the evening, (iv) the average a selected geographical area—an approach akin to the Human number of hours of supply, (v) the proportion of households reporting Development Index (UNDP 2014)—a simple energy access index can problems of low voltage, (vi) the proportion of households using be calculated by weighting the tiers and arriving at a weighted aver- solar lanterns, (vii) the proportion of households using home systems age (figure 2). The index evaluates both the extent of access (how (solar or other), (viii) the proportion of households using recharge- many households have access) and the intensity of that access (the able batteries, (ix) the average number and length of unscheduled level of access that households have). It can be easily aggregated interruptions experienced by households, and (x) the proportion of across geographic areas and tracked over time.3 households that are unable to afford greater use of electricity. Using the same concept of an overall energy access index, Demographic and economic data pertaining to households indices can be calculated for households, productive enterprises, may be used to complement the diagnostic analysis. For example, and community institutions to provide an overall picture of the the affordability of electricity for various income quintiles can be energy access situation in a given geographical area, making it examined in light of the prevailing tariff structure and how modifi- possible to spot gaps and opportunities for improvement in specific cation of that structure could make electricity more affordable for cases (figure 3). households at lower-income quintiles. Moreover, environmental conditions, such as housing characteristics, can provide insight into 3 This aggregation method is used by the Multi-Dimensional Energy Poverty Index of household choices, health issues, or affordability. Such diagnostics Nussbaumer, Bazilian, and Modi (2012). 6 C a p t u r i n g t h e M u lt i - D i me n s i o n al i t y o f E n e r g y A ccess As noted, the multi-tier approach requires data from energy How does this approach affect our thinking? surveys that are costly, time-consuming (taking months to complete), and need to be repeated every few years. Governments may be All energy interventions have an impact on energy tempted to bypass this effort in the interest of saving resources that access by improving attributes of energy supply could be directly used to increase energy access. However, the data Defining and measuring energy access by considering attributes of make possible a more accurate measurement of energy access energy supply yields a better understanding of how various interven- “Under this logical and an improved understanding of the underlying shortfalls, both tions improve access. Energy access projects are typically thought of framework, not only the of which are crucial for the success and sustainability of energy as those that either provide additional grid connections or deliver off- output (for example the projects. grid systems, such as solar lanterns or solar home systems. However, delivery of solar home other types of projects also contribute to improving energy supply systems, or MWh of and may have a positive effect on access (table 2). For example, a electricity) but also the outcome (the usability of energy supply for energy Table 2. Electricity interventions and their potential effect on access applications) needs to be Peak capacity Duration Evening Quality Reliability assured by the energy Project type Grid connections Legality (W) (hours) supply (voltage) (outages) Affordability provider.” Typical energy access projects Grid electrification Mini-grid electrification Off-grid and solar lanterns Generation and X-border T/M Transmission and Other energy projects distribution Rural feeder segregation Energy efficiency Regulations and market reform Positive impact of intervention on energy attributes Source: ESMAP 2014. 7 C a p t u r i n g t h e M u lt i - D i me n s i o n al i t y o f E n e r g y A ccess generation project may allow for longer hours of supply and improve to ensure basic lighting services, whereas countries in which most voltage; an efficiency intervention may increase the duration of people already have some form of access to electricity could focus supply or improve affordability. Such contributions, which cannot be on moving people into tier 4 or 5. Similarly, countries with a low accounted for under the traditional definition of energy access, are penetration of LPG or natural gas for cooking may decide to launch reflected in the multi-tier approach. a program to introduce advanced biomass cookstoves that would By improving energy access, energy interventions contribute to move households into the middle tiers (2 or 3), while other countries “The multi-tier the achievement of development goals through a series of result may focus on higher tiers by increasing natural gas connections. measurement of energy levels described by the energy result chain shown in figure 4. Energy Where funding is limited, governments will need to make trade-offs, access allows governments investments (inputs) lead to the delivery of assets or to policy for example between moving more people to tier 1 or 2 or raising reforms (outputs), which in turn improve one or more attributes of some percentage of the population to higher tiers. to set their own targets by energy supply (intermediate outcomes), such as greater availability, choosing any tier above improved quality, or increased affordability of energy. Collectively, tier 0.” these attributes increase the usability of the energy supply, thus improving energy access (outcome) and, Figure 4. Energy result chain eventually, the actual use of energy services (interme- diate impact). This in turn facilitates the achievement of developmental goals (impact). Result level Result parameter As the individual attributes of the energy supply improve, a growing number of energy services becomes Impact Development goals ULTIMATE BENEFIT feasible, thus widening access to energy. Under this logical framework, not only the output (for example the ENERGY delivery of solar home systems or MWh of electricity) Intermediate impact Use of energy services USER EXPERIENCE USE but also the outcome (the usability of energy supply for energy applications) needs to be assured by the energy ENERGY provider. Outcome Usability of energy supply ACCESS The adoption of the multi-tier approach for measuring energy access as a standard tool for planning, monitoring, and evaluating energy access interventions will allow a Intermediate outcome Attributes of energy supply better understanding of how energy interventions can be ENERGY SECTOR PERFORMANCE translated into development goals. The multi-tier measurement of energy access allows Output Assets, policies, regulations governments to set their own targets by choosing any tier above tier 0. Such targets will depend on the situation in a country, its development status, the IMPLEMENTATION Intermediate output Project implementation needs of its population, and the budget available. For PROJECT example, countries in which a high proportion of the population lacks electricity in any meaningful form Input Investment in energy might set a target of moving people from tier 0 to tier 1 Source: ESMAP 2014. 8 C a p t u r i n g t h e M u lt i - D i me n s i o n al i t y o f E n e r g y A ccess References EUEI (European Union Energy Initiative). 2011. Productive Use of Make further Energy—PRODUSE: A Manual for Electrification Practitioner. AGECC (Advisory Group on Energy and Climate Change). 2010. connections Eschborn, Germany: GIZ. Energy for a Sustainable Future. 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