P A R T N E R S H I P S F O RA RES I L I ENT ENERGY FUTURE

A P P R O A C H

“ Private investment is critical. We are Working actively With global ceos and investors to exPand energy

access, imProve efficiency and ramP-uP reneWables.our initiative Will actively Work With the Private sector to

generate a clean energy revolution. .

United nations secretary-General

Ban Ki-moon

UN Photo/Kibae ParK ©

“

6 2 8 m i l l i o n p e o p l ei n t h e a s i a - pa c i f i c r e g i o n

do not have accessto electricity

Widening access to energy servicesthrough

pro-poor public-private partnership (5p)

The 5P approach is a flagship business model developed by UN ESCAP which works to establish energy utilities through public and private sector investment. The current pilot projects are looking to utilize locally available renewable energy resources through solar mini-grid and micro-hydro technologies in order to provide energy services to rural communities in Nepal and Lao PDR.

Across the Asia-Pacific region, more than 628 million people lack access to electricity services. This has greatly hindered poverty reduction efforts and has entailed enormous indirect socio-economic costs, especially in rural areas. In many countries, provision of energy services is often constrained by poor energy infrastructure owing to limited financial resources and government investment.

Engaging the private sector to provide energy services in rural areas through Public-Private-Partnerships (PPPs) is seen as a strategic option to meet this challenge.

The current 5P init iat ive aimsto leverage the strengths of governments, the technicaland f inancial advantagesof the private sector, and the socio-economic development interests of communit ies.

The 5P pilot project has the following objectives:

1. Improve access to modern energy services for rural communities, especially women and other rural poor, through the development and implementation of the 5P approach to increase productive energy use for income generating activities.

2. Enhance policy-makers’ awareness and capac-ity to develop policy options at all levels – local, district/provincial and central governments for in-tegrating energy and rural development policies and programmes based on the 5P approach.

3. Create an environment conducive to the private sector/entrepreneurial investment while also incorporating community involvement.

4. Increase the use of locally available renewable resources to deliver sustainable energy systems that promote rural community development and help governments meet their energy access goals.

BACKGROUND PROJECT OBJECTIVES P A R T N E R S H I P S F O R

A RES I L I ENT ENERGY FUTURE

A P P R O A C Hp r o

5 p a p p r o a c h

p o o rp u b l i c

p r i v a t ep a r t n e r s h i p

“ community mobilization in the cinta mekar Project has been the key factor in enabling the PoWer Plant to be oPerated and

maintained on a sustainable basis for more than 10 years.

“

Mr. rae Kwon ChungDirector, environment anD Development Division, Un escap

The foundation for the 5P model was built from ESCAP’s previously implemented flagship project in Cinta Mekar, Indonesia, which successfully established a micro-hydropower plant jointly owned by the community and a private sector organi-zation. The project has been sustainably operating since 2004.

The 5P approach, which allowed the community to act as both a consumer and co-owner of the power utility, creat-ed community empowerment by allowing the people of Cinta Mekar to manage the income generated from the mico-utility for community development. Specifically, income generated from the community’s revenue share allowed the community to utilize the financial returns for entrepre-neurial activities. One example of this can be seen through the community’s purchase of a solar drying unit which has led rural women to increase their output of banana flower, resulting in increased income generation.

Overall, the project has been seen to help empower the community of Cinta Mekar, given its focus on poverty reduction by providing sustained source of income to the community through enhanced energy access.

* Return on Investment

government

electric utility company established

Donors

community mobilizer/ngo

h o w i t w o r k s

private sector community

Grant funding& policy oversight

Government grantpurchases utility

shares on the community’s behalf

Ensure community interests and collaborate with the private sector

$ $

$$ > >Equity investmentServices provisions

Co-ownership & ROI*

In-kind contribution

Community employmentCo-ownership & ROI*

United nations esCaPeConomiC and soCial Commission for asia and the PaCifiC

U n i t e d n at i o n s B U i l d i n g , R a j a d a m n e R n n o k a v e n U e

B a n g k o k 10200t h a i l a n d

5P APProAcheneRgy secURity and WateR ResoURces section

enviRonment and development division

email: esCaP-esdd-ers@Un.org

Website: UnesCaP.org/5P

IMPLEMENTING PArTNErS FUNDING AGENcIES

UN Photo/Kibae ParK ©

a l t e r n a t i v e e n e r g yP r o m o t i o n c e n t r e ( a e P c )

i n s t i t u t e o f r e n e w a b l ee n e r g y P r o m o t i o n

U n i t e d n a t i o n sd e v e l o p m e n t a c c o u n t

i n t e r n a t i o n a l F u n df o r a g r i c u l t u r a l d e v e l o p m e n t