Governance,DecentralizationandEnergy:TowardsaResearchAgenda

EdBrown(Co-Coordinator,UKLowCarbonEnergyforDevelopmentNetwork;SeniorLecturer,LoughboroughUniversity)

4thInternaHonalConferenceontheDevelopmentsinRenewableEnergyTechnology(ICDRET’16),January7th–9th2016,Dhaka,Bangladesh

LowCarbonEnergyin2016Opportuni)es

•  COP21Commitments•  SE4AllCommitments•  EnergyintheSDGs•  DonorPrioriHzaHon(DFID)•  TechnologicalDevelopments•  Businessmodel/socialengagementDevelopments

Challenges

•  PoliHcalEconomyobstacles•  Trade-offsbetweenlowcarbontransiHons,energyaccessandenergysecurity•  InsHtuHonalCapacityissues•  DisconnecHonofenergyissuesfromthewidersocialenvironment

TacklingtheChallenges• UKLowCarbonEnergyforDevelopment

Network(LCEDN)

• Communitybuilding(UKEnergyanddevelopmentresearch).• MulH-disciplinary.• MulH-sectoral.•  InformaHonportal.• CatalysingInternaHonalCollaboraHons.

h^p://www.lcedn.com

TacklingtheChallenges•  UnderstandingSustainableEnergy

Solu)onsProgramme

(EPSRC/DFID/DECC)

•  13projects.• MulH-country.• MulH-sectoral.• MulH-disciplinary.•  Capacitybuildingetc.

TacklingtheChallenges•  E.g.SolarNano-GridsProject(SONG)

•  CollaboraHonbetweenKenya,BangladeshandtheUK.• MulH-Disciplinary:Engineers,Geographers,SocialScienHsts.• MulH-Sectoral:UniversiHes,NGOs,LocalGovernment,SocialEnterprises

TacklingtheChallenges•  USESNetwork.•  Bringingtogetherthe13projectteamstolearnfromeachother.

•  RecentlyextendedfundingfromDFIDtoexpandthisrole.

•  KeyThemes:ResearchandImpact;BuildingSustainabilityintoprojectFinance;Inves<nginRela<onships;FairnessandCapacityinResearch.

•  DFIDInvesHngfurtherintothiskindofapproach(£60Million-TransformingEnergyAccess).

•  OneparHcularkeythemethathasemergedoutofalotofthisresearch–Governance,DecentralizaHonandEnergy

Governance,DecentralizationandEnergy:TowardsaResearchAgenda

EdBrown(Co-Coordinator,UKLowCarbonEnergyforDevelopmentNetwork;SeniorLecturer,LoughboroughUniversity)

4thInternaHonalConferenceontheDevelopmentsinRenewableEnergyTechnology(ICDRET’16),January7th–9th2016,Dhaka,Bangladesh

LocalEnergyGovernance:TheGlobalContext1.   EnergyTrilemma–

energyaccess,climatechange,energysecurity–leadingtoglobaltrendstowardsenergydecentralizaHon

2.   Poli)calDecentraliza)on-ChallengesfacinglocalauthoriHesinthecontextofdecentralizaHon–transferofresponsibiliHes,transferofresources,capacitybuilding,trans-scalecoordinaHon.

LocalEnergyGovernance:TheGlobalContext

•  Worryinglackofdirecta^enHonpaidtolocalgovernanceinmostsustainableenergyiniHaHves.

•  Electricityaccess:A^enHonfocusedonexpandingna#onalgridprovisionORhouseholdleveloff-gridiniHaHves.

•  Keydebates:Technology,PhysicalInfrastructureProvision,BusinessModels–NOTINSTITUTIONALCAPACITY,MULTI-LEVELPLANNING,WIDERIMPACTASSESSMENT.

•  AtthesameHme,lackofa^enHonpaidtoenergywithindecentralizaHonstrategiesandlocalgovernmentsfrequentlydon’thavespecificpolicies/budgetsforaddressingenergyissues

TheREADProjectRenewableEnergyandDecentraliza<on(EnergyLiteracyforDecentralizedGovernance)

ShortprojectwhichranunHlOctober2015–carryingonsomecountry-specificworkinKenyaProjectPartners•  PracHcalAcHonEastAfrica•  GAMOSLtd•  LoughboroughUniversity

Funders•  UKEngineeringandPhysicalSciencesResearchCouncil•  UKDepartmentforInternaHonalDevelopment•  UKDepartmentforEnergyandClimateChange•  UnderstandingSustainableEnergySoluHonsResearchProgramme(2013-2018)–13projects

ProjectAims•  ToassesstherolesandresponsibiliHesofAfricanlocalauthori#esinrelaHontoenergyissues.•  Toexaminehowtherolesandresponsibili#esoflocalauthoriHesinrelaHontoenergyissueshavealreadybeenaffectedbythetransferofpowersandbudgetsunderdecentraliza#oniniHaHves.•  UnderlyingallofthisisthequesHonofwhatkindofcapacitylocalauthoriHesneedinordertoplaythepoten#allycrucialroleofintegra#ngcleanenergytransi#onsintolocaldevelopmentplanningandhowthosecapaciHesarebeingenhanced•  Twospecificcountrycasestudies:RwandaandKenya

DecentralizationandEnergy•  A2009UNDPStudyistheonlysignificantstudyconnecHngthetwoareas.

•  Thisexploreddecentraliza#onpolicyinover60countriesandfoundexplicitmenHonofenergyissuesinonly4cases.

•  Ouranalysishasfoundveryli^lefurtherworkinthisareasincetheirstudywaspublished.

•  Butlocalgovernanceofenergyisclearlyimportantandlocalauthori#esclearlydohaveimportantrolesinrela#ontoenergyacrosstheglobe.

1.ADirectRoleinElectricityGeneration/Supply?•  LocalgovernmentplayedamajorroleinthedevelopmentoftheelectricityinfrastructureinmanyNortherncountries.

•  IntheUKlocalgovernmentagenciessuppliedaboutonethirdandtwothirdsrespecHvelyofgasandelectricityconsumpHonin1945priortonaHonalizaHon(Byrne,2000:22)

•  IntheUS,municipalandstateprovision(andcooperaHveprovisioninruralareas)wastheruleratherthantheexcepHonformuchofthetwenHethcentury.

1.ADirectRoleinElectricityGeneration/Supply?•  NotjustaNorthernphenomenon+notjusthistorical.

•  SeveralexamplesofelectrificaHonschemes(grid+off-grid)wherelocalauthoriHeshaveplayedamajorrole.

•  E.g.State-levelresponsibilityforimplemenHngnaHonalelectrificaHonpolicyinSouthAfrican-linkedtointegratedregionaldevelopmentplans.

•  PlusMunicipali)eshaveresponsibilityforimplemenHngFreeBasicAlternaHveEnergyPolicy.

•  Therearealsootherexamples•  Significantdebatesovertheirrecord.

1.ADirectRoleinElectricityGeneration/Supply?

• Mostsuccessfullocal

governmentexperiencesin

electrifica)oninvolvea

facilita)onrole(ratherthan

directprovision)…..

•  Successseemstodependupon:•  Sufficientlocal/regionalcontrolofbudgets;

•  CapacityBuildingforlocalinsHtuHons;

•  MulH-levelcollaboraHonswithclearlydefinedroles…...

Nepal•  SuccessfulRoleoflocalinsHtuHonswithinmicro-hydroiniHaHves.

•  OriginalUNDPfundedproject–

•  ResponsibilitytomanageanddeliverenergyservicesdecentralisedtocommuniHesunderoversightoflocalauthoriHes+village/districtdevelopmentcommi^eeswithwelldefinedroles(UNDP2007a,EC2007)

•  Long-termcapacitybuildingunderlaythesuccessfuloutcomesofthisiniHaHve(largeporHonofoverallprojectcostswentincapacitybuildingoflocalanddistrictcommi^eesetc.)

Chile•  PrivatesectorapproachtoruralelectrificaHonbutstrongstatecoordinaHonatnaHonalandregionallevels.

•  1992:AbouthalfoftheruralpopulaHonhadnoaccesstoelectricity.By1999thishadfallento24%(Jadresic,2000).

•  Thestateprovidedaone-offsubsidytoparHallycoverinvestmentcostsofnewruralelectricityventures.

•  ProgrammerunbyregionalgovernmentswhoallocatedfundscompeHHvely(accordingtolevelofinvestment,projectedsocialimpactsetc.)

•  RegionalgovernmentsreceivefundingonthebasisofprogressmadetheprecedingyearandnumberofhouseholdssHlllackingelectricity.

2.IndividualInitiative•  ThepreviousexamplesaredrawnfromnaHonalprogrammesadministeredlocally,

•  SomemunicipaliHes/regionalauthoriHeshavetakentheiniHaHveandsetuptheirowniniHaHves.

•  IntheNorth,thereisagrowingmovementforlocalgovernmentstotakealeadershiproleinpromoHngtransformaHveacHonondecentralisedenergy(e.g.Germany,UK)

2.IndividualInitiative•  ButitsnotjustimportantinEurope-OtherexamplesoflocalenergyprogrammesrunbyorsupportedviaindividuallocalgovernmentsintheGlobalSouth.•  E.g.Wastetoenergyprojectsorschemeslinkedtootherlocalauthorityservices(health,educaHonetc.)

BiomasaInvestmentNicaraguaSA(Binicsa),isprocessingwastetogeneratecleanenergyinten

NicaraguanciHes.Thecompanywillalsosupportlocalgovernmentsinimprovingtheirwastedisposal

systemsandtheselecHonofwaste.

3.OtherImportantRolesforLocalAuthorities

•  NotalllocalauthoriHeshavethecapacity(ortheresources)todeveloptheirowngeneraHonprojects.

•  ButthereareplentyofexamplesofotheracHonsthatindividuallocalauthoriHeshaveengagedinwhichhavemadeadifferencetolocalenergygovernance.

•  Auditofenergyprovisionandenergyneeds•  SocialConsulta)on:NotjustascertainingthetypesofneedsthatcommuniHesandlocalbusinessesexpressinrelaHontoenergybutalsohowtheyrankthoseneedsagainstothernecessiHesanddesires(e.g.CentralAfricanRepublic/Nicaragua)

•  ThebestoftheseconsultaHonprocessescanfeedintoimprovingoverallnaHonalenergypolicymanagement,thetargeHngofparHcularschemesoridenHficaHonofcapacitybuildingneeds

OtherImportantRolesforLocalAuthorities

•  EnsuringthatNGO/privatesectorenergyiniHaHvesareconnectedadequatelyintolocalandregionaldevelopmentstrategiesandlocalprogrammesinwater,educaHon,healthetc..

•  Provisionofinforma)onandtraining

aboutenergyissues(forexampleaboutspecifictechnologies,howtouseenergyforlivelihoodenhancement,contactsforcompaniesoperaHnginparHcularfields,fundingpossibiliHesetc.).

•  A‘demonstratorrole’inpromoHngnewtechnologiesorapproachesinthedeliveryofservicestolocalciHzens(e.g.energyefficiencymeasuresfreeupfundsforotheruses)

•  E.g.theuseofcleanenergytechnologiesinpoweringmunicipalbuildings.

PurportedAdvantagesofPoliticalDecentralizationforEnergyAccess/LowCarbonTransitions•  Coordina)onofenergyserviceswithotherserviceprovisioninfrastructures(health,educaHon,economicdevelopment,agriculturalextensionservices).

•  Coordina)onofthewidevarietyofactorsinvolvedintheenergysectorandmoreeffecHvetargeHngofnaHonalenergypolicyandprovisionofsupportservicesandnetworkingopportuniHes.

•  PoliHcaldecentralizaHonshouldencouragelocalpeopletoplayamoreacHveroleinar)cula)nglocalsolu)onstothechallengeswhichtheyfaceincludingenergy(closertowheredecision-makingtakesplace)–assumesdecentralizaHonimpliesencouragementofconsultaHon/parHcipaHon

PurportedAdvantagesofPoliticalDecentralizationforEnergyAccess/LowCarbonTransitions

•  ButsomuchdependsuponnaHonal/localcontextofeachsituaHon–capacity,transparency,legiHmacy,resourcing,legislaHveauthority.

•  Theinter-rela)onshipsbetweendifferentbranchesofterritorialgovernmentandotheractors(andbetweendifferentscalesofgovernmentarecrucial

•  “thesharingofpowerbetweennumerousscalesofgovernancemust

beseamlesslymangled,resul<ngin

a“polycentricity”or“nestedness”

thatinvolvesmul<pleauthori<es

andoverlapping

jurisdic<ons”(Sovacool,2011:3833)

Source:EdAraralandKrisHartley(2015)PolycentricGovernance

foranewenvironmentalregime

hTp://www.icpublicpolicy.org/IMG/pdf/

panel_46_s1_araral_hartley.pdf

Governance,DecentralizationandEnergy:TwoCaseStudies:RwandaandKenya

RwandanDecentralization•  “SinceRwandaembarkedonadecentraliza<onprocessin2000,ithasmadetremendousprogress.Ithascompletelyredesignedlocaladministra<on,se[ngupstronglocalplanningandmonitoringmechanisms.Localgovernmentsaretodaythemainimplementersofna<onalpolicies,execu<ngmorethan25%ofthedomes<cbudgetin2011–12andemploying50%oftheRwandanadministra<on”(Chemouni,2014:246).

•  Thereisclearevidenceoftangibledecentralisa)onofroles,budgetsandresponsibili)estolocaladministraHveenHHes(Districts,sectors,cellsandvillages).

•  Interpreta)ons?Efficient,co-ordinatedandeffecHveservicedelivery;IncreasedciHzenparHcipaHonindevelopmentandsystemaccountabilityORtechnocraHcformofensuringrapiddeliveryofcentraliseddecision-making?

TheRwandanContext:Energy

•  AmbiHoustargets.Theplanistoincreaseelectricityaccessfrom18%to70%bytheendofJune2017(RwandaEnergySectorStrategicPlan2013-2018).

•  52%oftheenhancedaccessplannedwillbeoffgrid.

•  SimilartargetsforICSusage,biogasinstallaHonsetc.Allagreedandtargeteddowntolocallevels.

DifferentRoles:•  Centralgovernment(Ministries,Publicagencies):setspolicy,strategy,standardsandregulatoryandlegalma^ersrelatedtoenergy.

•  DecentralisedEn))es:Plan/setenergyprioriHes(e.g.electrificaHon,uptakeofICS)inannualdistrictdevelopmentplans(linkedtonaHonalgoals+prioriHes),monitoredthroughperformancecontracts.SectorplanssimilarlyalignedtoDistrictplans+prioriHes.

MoreDetailontheRoleoftheDecentralizedEntities•  Responsibleforapprovalstoprivatecompanies,NGOsandothersoperaHnginenergywithinDistrictsandSectors(NoorganizaHoncanoperatewithoutthesepermissions).• WorkwithEWSA(Energy,WaterandSanitaHonAuthority)toidenHfythoseeligible+distributebiogassubsidies.•  AssistICSproducersself-organiseintocooperaHves•  Undertakepublicsensi)za)onandmobiliza)onwithregardtorenewableenergyprojectsincludingbiogas,solar,ICSetc.•  Responsibleforthesecurityofenergyinfrastructure• MobiliseresourcesandbudgeHngforenergyprojects•  SupportMININFRAandEWSALtdinmaintainingadatabaseofallenergyinstalla)onstoaidnaHonalplanning.•  EachDistrict/SectorhasaJADF–aConsulta)veForumofstakeholdersthatdiscussesandimplementsdevelopmentplans.

IssuesidentiSiedduringtheKigaliWorkshop•  Strengths:CoordinaHon,TargeHng•  TherearemulHpleprioriHesbutinsufficientfunding-energyorenthepoorrelaHon(targetsfrequentlynotmet)

•  Limitedlocal-leveltechnicalcapacity.Relatestoboth(a)thecapacityoflocalgovernmentstaff/decision-makersand(b)capacityininstallaHonandmaintenanceatlocallevels(retenHonissues).

•  GovernmentinsHtuHonsseetheirroleasawarenessraising(changingbehaviours,spreadingknowledge)buttheyalsoneedtolearn.

•  NeedforcreaHonofmorepublicpla[ormstodiscusscoordinaHonofenergyactorsandaddressingenergyconcernsoflocalcommuniHes(e.g.energy-specificJADF)

IssuesidentiSiedduringtheKigaliWorkshop•  Theneedfortherightins)tu)onalframeworkwithclearrolesandresponsibiliHes(notalwaysclearandsomeHmesoverlybureaucraHc)

•  Districtsandsectorsalsohavehumanresourcechallenges,withasingleofficerfrequentlybeingresponsiblefor3-4largeporsolios.Atadistrictlevel,energyfallsundertheofficerforInfrastructure,EnvironmentandLanduse.

•  LackofpurchasingpoweroftargetpopulaHons.

•  Limitedlevelofprivatesectordevelopment(bothintermsofinnovaHvefinancialproductsandenergysector)–localgovernmentperhapsdoesn’tplayasstrongaroleasitcouldhereinfacilita)ngenterprisedevelopment.

KenyanDecentralization

•  NewKenyanCons)tu)onin2010–newstrongcountygovernments.

•  ComplexpoliHcalprocess–inter-relaHonshipssHllunclear-atHmes,overlappingmandates.

•  NewEnergyBill–devolvescertainpowersrelatedtoenergytothecountylevel(poliHcaldeadlock).

•  NewRuralElectrificaHonandRenewableEnergyAuthorityREREAproposedwithafocusonsupporHngcountygovernmentsinelectrificaHon.

•  EachCountyGovernmentisrequiredtodevelopCountyEnergyplans.

•  Royal)esforenergyresourcesextractedfromcounHestobesharedbetweenNaHonalandCountyGovernments&CommuniHes.IntroducHonofanEqualizaHonFundtosupportelectrificaHoninmarginalizedareas.

TheKenyanContext:DecentralisedEnergyTargets•  LotsofNaHonalleveltargetsbutsomewhatunclearwhereresponsibilityformeeHngtheselies(NaHonalEnergyBill)•  GoKwouldliketofacilitateaddiHonalsolarhomessystems.100,000newsystemsby2020,200,000by2025and300,000by2030.•  SomeMini-GridandNano-GriddevelopmentbutdeveloperswaiHngonappropriateregulatoryframework.•  NaHonalGridextensionannounced(LastHalfMilescheme)notwellcoordinatedwithexisHngdecentralisedactors•  GOKisworkingwithCSOsandGACCtoimproveuptakeofImprovedCookstovesthroughtheKCAPiswhichaimstocatalyseadopHonofICSbyover7millionhouseholdsby202• WithinthesameHmeframesastheSHSinstallaHons,thegovernmentintendstofacilitateinstallaHonofanaddiHonal5,000,6,500and10,000biogasdigestersrespecHvely.

IssuesidentiSiedfromaWorkshopinNakuru•  Energyisyettoreceiveprominenceonthecountyagenda.TheCountyministryistaskedwithawiderangeofresponsibiliHes-Environment,NaturalResources,EnergyandWater(MENREW)

•  People’senergyneeds:ThechallengeindecentralizaHonistothinkaboutthedifferentenergyneedsofpeopleatthelocallevel,e.g.householdandinsHtuHonalcookingandlighHngneeds,andnotonlylargescaleelectricitygeneraHonprogrammesandprojects

•  Clearbenefitsforcountygovernmentfromthedevelopmentofgeothermal

resourcesareyettobeseen

IssuesidentiSiedfromtheNakuruWorkshop

•  TheNakurucountygovernmentisalreadyinvesHnginbiogasandtherehasbeensomesupportforbriquevng.SolidwasteoffersagoodopportunityforenergyproducHonandthereareanumberofproducers.

•  VariousstakeholdersundertakingdecentralisedenergyacHviHes-needtotalkandlearnfromeachother(nocurrentforumtodothis)

•  Alotofawarenesscrea)ononcleanenergyisneededinboththecountygovernmentandamongcountyresidents

IssuesidentiSiedbyothercounties•  Combinedmandatesincountyministries.

•  Needforagreementonhowroyal)eswillbesharedlocally

•  Concernsovercommunica)onbetweenCounty&NaHonalGovernmentforHmelydecisionmaking;localisaHonoftheREREA

•  InadequatebudgetsandlocalcapacityofcountyexecuHves/stafftoimplementdecentralisedenergyprojects

•  Abundantrenewableenergyresources;limitedcapacitytodevelopthem

•  ConcernsoverobtainingguaranteesfromNaHonalGovernmentforcountylevelenergyprivatesectorinvestment

•  NeedforrecogniHonoftheroleofSME’sintheenergysector.(SMEsassessmentsneededatthecountylevel)

•  DebateovertheuHlisaHonoftheproposedEqualisa)onfund•  Needforsupportinpar)cipatorycountyenergyplanning•  Decisionmakingmandates/processesMCAs&Governor

•  Channellingofrevenuefromenergyprojects

Opportunities•  WillingnessbyNaHonalandCountyGovernmentstoengagewithandsupportcountyandna)onallevelcapacitybuildingindecentralisedenergy(alreadystrongprogrammesinotherresourceareas–e.g.sanitaHonandwaste)

•  ExistenceofastrongCSO,Research,TrainingandPrivateSector&Financingfraternityworkingondecentralisedenergyaccessissuesinthecountry

•  Exis)ngpla[ormsforinformaHonexchange,lobbyingandcapacitybuildingofdecentralisedenergyiniHaHvesinKenyae.g.CCAK,KEREA

•  Adonorcommunityconvincedoftheimportanceofimprovinglocalenergygovernance.

•  RecogniHonofimportanceinSE4AllStrategyPlanningDocumentaHon

FutureREADrolesinKenya?

•  Buildingcross-sectoralpartnershipsforjoinedupwork•  Inter-countyinforma)onexchange:ThecountycanbenefitgreatlyfrominformaHononhowothercounHesaremanagingtheenergyprojects(inter-countycollaboraHononenergy)andbe^erunderstandingoftheregulatoryenvironment

•  CountyEnergyColloquiums.•  Connec)ontoexisHngplasorms

•  Technicalcapacitybuildingincountygovernmentsondecentralisedenergy•  Capacitybuildinginpar)cipatoryenergyplanning•  IdenHficaHonofresourcesforimplementaHon

RaisingtheProSileofLocalEnergyGovernance(GLOBAL)?“(e)nhancingenergyservicedeliveryatthelocallevelwillrequirebeTercoordina<onandaccountabilitymechanismsbetweenna<onalandlocalins<tu<ons,andacrosssectors,aswellasempowermentoflocalauthori<estoplanandmanageenergy”(UNDP,2009:7).Howdowehelpmakethishappen?•  BuilduparepositoryofknowledgeonlocalgovernancerolesinsuccessfullowcarbontransiHonsandaccessiniHaHves(andevidenceonsuccessfulpolycentriciniHaHves)

•  RaisetheprofileoflocalauthoritycapacitybuildingamongstthosefundingenergyiniHaHves(egacrossSE4ALLCountryAcHonPlans)

•  RaiseprofileonenergyamongstthoseplanningdecentralizaHoniniHaHves.

•  BuildnetworkinginiHaHvesamongstlocalauthoriHes(e.g.energyciHes,ICLEI,twinningetc.)

Thankyouforlistening!