GLOBAL CHALLENGES, INTEGRATED SOLUTIONS: A COOPERATION MATRIX AGAINST ENERGY POVERTY by access to energy

GLOBAL CHALLENGES, INTEGRATED SOLUTIONS: A COOPERATION MATRIX AGAINST ENERGY POVERTY

Fondazione Eni Enrico Mattei, Fondazione Giangiacomo Feltrinelli within the LabExpo Project and Prof. Emanuela Colombo from Energy Department of Politecnico of Milan

Graphic Design Viridiana Ammendola, @ViriAmmendola

Stampa a cura di

Stampato il 2 Dicembre 2014

Indice Introduction _pag. 11 Summaries of presentations _pag. 19 Case Studies & Initiatives _pag. 45 The Policy Recommendations and International Experts Suggestion Matrix_pag. 53 The Matrix CROSS - cutting topics _pag. 75 Conclusion _pag. 79

Introduction

| Introduction |

From ancient times to the modern age, energy has always been deeply linked to the history of mankind and to human development. Energy is a key condition to guarantee access to clean water, sanitation, schooling and business in developing countries. Nevertheless, universal access to modern energy was not included in the list of the Millennium Development Goals, hence, its identification as the Missing MDG. In the last 15 years, the relevance of energy in the global scenario has risen and today its role in fighting poverty is clear: energy drives human progress, and the benefits of modern energy services need to be available for all. This concept was at the basis for moving energy to the top of the development agenda by launching the UN’s Sustainable Energy for All initiative in 2010. Along the same line ‘‘to act to make sustainable energy for all a reality and, through this, help to eradicate poverty and lead to sustainable development and global prosperity’’ was the commitment taken during the International Year for Sustainable Energy for All (2012) and the Rio+20 Conference by the International Community. With this increasing interest, it became more and more clear that the pathway to sustainable development could not forgo the universal provision of affordable, reliable, clean and modern energy services. Therefore, the Global Thematic Consultations on Energy have been activated to conduct a multi-stakeholder dialogue at global level on how energy should be addressed in the United Nations Post-2015 Development Agenda. The centrality of energy has been universally recognized and has led to the design of a specific related Goal which includes access, efficiency and renewable energies penetration as well as the three dimensions of economy, environmental and social sustainability. This comprehensive approach is mandatory to proceed towards innovative and locally appropriate technologies, business models, financial mechanisms, regulations, and policies. Within this complex ensemble of objectives, the joint cooperation and synergies between the private and public sectors, including civil society and the academia will be central to achieve such ambitious goals.

| Introduction |

This is the spirit that inspired the organization of the international workshop on â&#x20AC;&#x153;Energy Poverty and Energy Access: Global Challenges and Goalsâ&#x20AC;? by Fondazione Eni Enrico Mattei (FEEM) and Fondazione Giangiacomo Feltrinelli (FGF) within the LabExpo Project, in collaboration with Eni, on July, 10 - 11, 2014. In fact, the event gathered together a number of representatives from the academia, international organizations, private sector actors and Non-Governmental Organizations (NGO) with the aim of generating new insights and concrete policy recommendations. The two main goals of the workshop were to investigate in depth and understand the impact of access to modern energy services on development and identify the best ways to implement effective policy and interventions, find best practices and possible strategies of cooperation among the different actors in improving energy access. This publication contains the main achievements of the workshop and the structure reflects the organization of the two working days. The first part summarizes the presentations given during the first day of the workshop. It outlines the dimensions and scenarios for energy poverty, its impacts and consequences on several aspects such as poverty, household welfare, productivity and business. Case studies and best practices are also presented. The second part is focused on the results obtained in the second day of the workshop during the closed-door round table. The experts used a participatory approach to disaggregate the problems and dimensions of access to energy and fitted them into a Policy Recommendations and International Experts Suggestion Matrix (PRISMA). The Matrix reports the main players which have a specific role within the frame of access to energy in the columns, while the rows report the key dimensions of the problem identified at the end of the debate. The two-day workshop has been an excellent occasion to identify challenges and opportunities and to stimulate a debate among experts leading to define a set of potential solutions and policy recommendations. The wish which led to the construction of this publication was to underline the results of the workshop and to create a tool which may be truly effective for the whole set of players called upon to give their contribution in tackling the global issue of energy poverty.

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Summaries of presentations

AN OVERVIEW OF IMPACTS OF ENERGY ACCESS

Jacopo Bonan, Catholic University and Lab|Expo, Fondazione Giangiacomo Feltrinelli (with Stefano Pareglio and Massimo Tavoni)

Universal access to modern energy services, in terms of access to electricity and to modern cooking facilities, has been recognized as a fundamental challenge for development and it has been included in the Post-2015 Sustainable Development Goals. The International Energy Agency estimates that currently 1.26 billion people (18% of worldwide population) lack access to electricity and 2.64 billion (38% of global population) rely on traditional cooking methods based on

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the use of biomass with severe consequences on health due to indoor air pollution (IEA 2013). The World Health Organization estimates that the use of traditional methods of cooking, through wood and biomass combustion, has severe consequences on the health of households, due to indoor air pollution. The recent Global Burden Disease study estimates that almost four million people die every year from indoor air pollution due to the use of

| An overview of impacts of energy access |

traditional cooking fuels and stoves (Lim et al. 2013, Martin et al. 2011). Moreover, the extensive use of wood as main energy fuel impacts the local environment, due to deforestation, soil degradation and erosion. Despite a strong praise for action and several programs at both national and international level, very few impact evaluation studies try to shed light on the causal relationship between access to energy and development. Understanding the impact of access to modern energy services on household welfare, labour market outcomes and gender empowerment and the best ways to help decision-makers to implement effective policies and interventions are of key relevance for development in society. Evidence-based considerations on efficacy and efficiency of modern energy adoptionenhancing strategies are extremely important when resources to cooperation and development are scarce. The presentation shows a review of the literature on impact evaluation of access to electricity

and modern cooking facilities. The studies which have been included attempt to draw causal impacts of access to modern energy, using rigorous experimental and non-experimental microeconometric estimation methods. For access to electricity the outcomes considered are labour markets, time allocation, household welfare (consumption, income, schooling and health) and business. For access to improved cookstoves, we assess impacts on household welfare. Finally, the barriers and drivers of access to modern energy services identified by most recent impact evaluation studies are reviewed. The most relevant are shown to be liquidity constraints, lack of information, knowledge and trust, women bargaining power within the household. The authors also briefly depicted the experimental design of a study they will realize in Mali in fall 2014, with the aim to estimate the impact of networks and financial barriers in the decision to adopt improved cookstoves.

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A GLOBAL PERSPECTIVE ON ENERGY ACCESS: SYNERGIES AND TRADEOFFS WITH OTHER SDGS Shonali Pachauri, International Institute for Applied System Analysis (IIASA)

There is no unique definition of “access to modern energy”, because there are a lot of elements that characterize this concept: different kind of end uses which need different types of energy; many degrees of “modernity”; access does not just mean physical access, but also affordability, quantity, quality, reliability etc. are important additional dimensions. Although there is no agreement on the definition of energy access, it is universally recognized that energy represents a fundamental condition for development. Currently about 1.2 billion people have no access to electricity and another 1 billion have only sporadic or unreliable access; the phenomenon of energy poverty is geographically concentrated in Sub-Saharan Africa, South and South-East Asia, and is prevalent to a lesser extent in East Asia, Latin America and Eastern Europe too. Based on scenario analysis conducted at IIASA within the study Pathways to achieve universal household access to modern energy by 2030, the presentation gives a vision of how global energy access is likely to be in 2030 without new global efforts. Without specific policies to improve energy access, dependence on solid fuels is expected to rise with an additional 50–220 million people in sub- Saharan Africa, South and Pacific Asia relying on traditional solid fuels and stoves, compared to 2005 and, at the same time, 600–850 million people could remain without electricity in rural areas of the same regions. The presentation also focuses on the environmental impacts of access to modern energy or lack thereof, in terms of emissions and consequences on human health. Four million premature p. 22

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| A global perspective on energy access: synergies and tradeoffs with other SDGs |

deaths per year are currently related to air pollution within homes â&#x20AC;&#x201C; caused by the inefficient use of traditional biomass for cooking and heating. The achievement of universal access to modern energy can more than halve the volume of Particulate Matter 2,5 concentration by 2030, compared to 2005 values. This would lead to a reduction of 22 million annual DALYs (Disability - Adjusted Life Year, a metrics which combines mortality and morbidity effects) from household air pollution. The author underlines the importance of identifying the impacts of policies on a wider set of outcomes: universal access to energy could be beneficial to the achievement of policy goals in the field of health, labour markets, climate change and economic development. Higher degrees of coordination among different ministries and policy actors (too often behaving in â&#x20AC;&#x153;silosâ&#x20AC;?) should be encouraged in order to maximize efforts and resources. The potential economic benefits from universal access are then shown through some data related to analysis from India: universal electrification by 2030 could save $0.6-0.7 billion per year in avoided kerosene subsidies for lighting alone and raise earnings for non-farm enterprises by 25%. The conclusion is that universal access to modern cooking and basic electricity services is essential for sustainable development and it is achievable by 2030, but more efforts are needed: investments of $65-86 billion per year till 2030, targeted subsidies, dedicated policies and coordination among policies and pro-poor low carbon pathways are key elements to achieve the target.

Fig. 1 Impacts of energy access to development p. 23

DOES THE QUALITY OF ELECTRICITY MATTER? EVIDENCE FROM RURAL INDIA Ujjayant Chakravorty, Tufts University

(with M.Pelli and B. P. Ural Marchand)

In 2009, 288 million people, about a fourth of Indiaâ&#x20AC;&#x2122;s population, had no access to electricity. In 2005, 364 million people did not have access, while another 300 million received intermittent supply. According to the World Bank, unreliable electricity supply has been a major obstacle in Indian economic development, limiting its comparative advantage in labor-intensive products. Connecting all households to the grid and providing them assured electricity is likely to have a major positive impact on the Indian economy. A variety of factors may lie behind the p. 24

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electrification of certain areas and the non-electrification of others. Governments usually aim infrastructure investment to already growing areas. Other economic trends may affect the investment decision. For instance, a rich village is probably more likely to be electrified than a poor village. The likelihood of being connected to the grid may also depend on the proximity to a big city, or on the population density of the region. For all these reasons, disentangling the impact of infrastructure investments such as electricity on development outcomes is a major challenge in this

| Does the quality of electricity matter? Evidence from rural India |

research and one has to use instrumental variable estimations to establish causality. The presentation shows the effects of increased access to electricity in rural India on household income by looking at both the effect of connecting a household to the grid (the intensive margin) and the quality of electricity, in terms of hours of supply (the extensive margin). The key finding is that a grid connection increases non- agricultural incomes of rural households by about 9 percent during the study period (1994-2005). However, a grid connection and a higher quality of electricity (in terms of fewer outages and more hours per day) increases non-agricultural incomes by about 28.6 percent in the same period. This highlights the importance of providing a high quality supply of power, as the potential benefits of electricity are not completely realized by only connecting households to the grid. A policy implication is that

improving the reliability of infrastructure may be as or more important than building new facilities.

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HOW DO ELECTRICITY SHORTAGES AFFECT PRODUCTIVITY? EVIDENCE FROM INDIA Stephen O’ Connell, City University of New York

(with H. Allcott and A. Collard-Wexler)

One of the potential contributors to the large productivity gap between developed and developing countries is low quality infrastructure, and one of the most stark examples of infrastructure failures is electricity supply in India. Under normal circumstances the Indian government estimates that shortages currently amount to about ten percent of demand at current prices, and many consumers have power only a few hours a day. In the 2005 World Bank Enterprise Survey, one- third of Indian business managers named poor electricity supply as their biggest barrier to growth. According to these managers, blackouts are far more important than other barriers that economists frequently study, including taxes, corruption, credit, regulation, and low human capital. The presentation shows the results of a case study which analyzed how Indian textile plants respond to weekly “power holidays” in particular how electricity shortages affect all Indian manufacturers. The main finding from the study is that shortages reduce average output p. 26

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| How do electricity shortages affect productivity? Evidence from India |

by about five percent; electricity shortages affect productivity much less than revenue, and shortages alone certainly do not explain much of the productivity gap between firms in developing vs. developed countries. Furthermore, plants without generators have much larger losses and because of economies of scale in generator capacity, shortages more severely affect small plants which constitute the large majority of Indian firms. Even if it is infeasible to sufficiently increase generation capacity or to raise electricity prices during periods of scarcity, the analysis suggests that two policy changes could reduce losses from shortages. First, advance knowledge of outages through planned power holidays can mitigate productivity losses by making additional inputs storable. Second, mechanisms such as interruptible contracts allow plants that have lower costs of outages to reveal this to the distribution company. This allows shortages to be â&#x20AC;&#x153;targetedâ&#x20AC;? at firms that can more easily accommodate them.

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RIGHT, INTEGRATION OF RESOURCES AND TECHNOLOGICAL STRATEGIES FOR ACCESS TO ENERGY Emanuela Colombo, Politecnico of Milan

We are all now aware that roughly about 1.2 billion people have no access to electricity, another 1 billion have only sporadic or unreliable access and about 2.6 billion of people still rely on non- commercial biomass burnt into traditional devices for their domestic usages. This is the global size of access to energy. This issue does not affect developing countries only, in fact about 75 million people are suffering from energy poverty even in Europe, where the problem has been exacerbated by the economic p. 28

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crisis, the consequent unemployment and the phenomenon of immigration. The IEA forecasts to 2030 state that no big changes are expected unless the international community will be able to deeply innovate the solutions for access to electricity and access to modern energy services. From our perspective and at the light of the previous presentation, there are three aspects about energy poverty that need to be underlined and deepened in

| Right, integration of resources and technological strategies for access to energy |

terms of research and attention from the International Community. The first aspect is related to energy access considered as a right. Indeed, if energy access is related to development, access to energy should be a sort of right for everyone. From a philosophical point of view, energy does not determine human dignity and this is why access to energy cannot be defined as a fundamental right; rather we can imagine it as an instrumental right, because through energy the fundamental rights may be guaranteed. Starting from this consideration two main questions raise: Where is the trade-off between commitment of the final user to pay electric energy and their right to have it? Should the International Community define a minimum level of access, granted to everyone? There are no answers to these questions yet. A balance seems to be a reasonable indication but further multi-

disciplinary research is needed. The second element is the relation between energy and other resources and how these resources are managed and used. Nowadays we cannot consider energy disconnected from other resources such as water, food and land. These resources are characterised by some common elements, indeed they are under constraint at a global level, access to them is not granted and the need for them is increasing. For this reason, integrated management of resources is now claimed at the international level, calling more and more for a proactive cooperation rather than a dangerous competition among their usage. Finally, the technological selection and adoption, which represent the way in which, for instance, electricity is brought, may affect the impact of access to energy at the local level. In the forecast scenario designed in 2012 by the IEA to reach Universal Access p. 29

| Right, integration of resources and technological strategies for access to energy |

to Energy by 2030, grid connected systems were called for providing 40% of additional electricity and the remaining 60% should come from delocalized power generation (Home base systems, Mini Grid, Integrated Hybrid Systems...) which are locally based and are more suitable for exploiting local resources, giving relevance to renewable energies. When looking for a technological strategy to support access to energy, a number of dimensions need to be considered in addition to economic ones. Here below we report the main dimensions which are now supporting the spreading of distributed generation systems based on renewable energies which may fit mainly, but not exclusively, rural and non-urban area.

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Global Challenges, Integrated Solutions

| Right, integration of resources and technological strategies for access to energy |

Fig. 2 Dimensions for a correct technological strategy to improve access to energy

As a conclusion, then, we may state that any appropriate energy technological strategy, cannot be analyzed on the basis of one single dimension only but need to be evaluated accordingly to a wide spectrum. Its final aim is to provide a certain amount of energy per capita (kWh or MJ) , not as a final goal, but an instrument to achieve the real final objective of all our efforts which should not be anything else then a more equitable and sustainable development for the local communities and the local people.

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THE BENEFITS OF EXPANDING ENERGY ACCESS THROUGH RENEWABLES: THE EXPERIENCE OF SOLAR HOME SYSTEM FROM BANGLADESH From “Surge in Solar Powered Homes: Experience in Off-Grid Rural Bangladesh” oncoming book to be published by the World Bank.

Hussain Samad, The World Bank (with Shahidur R. Khandker, Zubair K.M. Sadeque, Mohammed Asaduzzaman, Mohammad Yunus, A.K. Enamul Haque)

Scaling-up adoption of renewable energy technology, such as solar home systems (SHS), to expand electricity access in developing countries can accelerate the transition to low-carbon economic development. In this process some initiatives and programs might be more successful than others. This is the case of the SHS p. 32

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Program, promoted by the Infrastructure Development Company Limited (IDCOL) which made the year-wise installations of SHS from 11,697 in 2003 to 852,388 in 2013 in Bangladesh. The one in Bangladesh is now the fastest growing Solar Home System in the world. Using data from a purposely collected

| The benefits of expanding energy access through renewables: the experience of solar home system from Bangladesh |

national household survey, this presentation quantifies (i) the effects of solar home systems in terms of reduction in CO2 emissions and socio – economic impacts in Bangladesh and briefly (ii) covers how these benefits and the demand for SHS can be sustainable over a long time. First, dissemination of solar home systems brings about significant carbon benefits: 5.5 kg reduction in CO2 emission per month per household which translates to nearly 160 million kg in avoided CO2 emission every year for all SHS households in rural areas. The economic impact deriving from the adoption of solar home systems is quantifiable in a 12.3% gain in per capita income and a 5.1% in per capita expenditure. From a social point of view, effects are observable on three different aspects: an increase in the rate of school enrollment and completed schooling years for both girls and boys; change in

women’s time use such as a reduction in fuel collection activity in favor of activities such as studying, reading and tutoring children; finally, the reduction of incidence of disease in last 12 months: in particular in gastrointestinal diseases among adult women (-3.3 %) and respiratory diseases among young girls (-2.9%). A necessary condition to make these benefits durable over a long period is the drop of SHS price – which has been already observed during the whole period 2003 – 2013 – and the maintaining of interest subsidies to IDCOL and to SHS providers.

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RENEWABLE ENERGY FOR UNLEASHING SUSTAINABLE DEVELOPMENT

Stefano Bologna, United Nations Industrial Development Organization (UNIDO)

Energy access and development are very closely connected, as sustainable energy access generates new opportunities for entrepreneurial activities and business development, including energy production and energy services, which feed the process of entrepreneurship promotion and development. Currently, energy access has not much space in the general business models and global energy systems are still mainly based on fossil fuels. This paradigm does not leave room to renewable sources which - through small grids or off-grid solutions - may have a relevant role in providing sustainable energy to those (rural) areas which are not connected to the grid. Renewable energy sources provide an opportunity for developing countries and countries with economies in transition to embrace a low carbon pathway powered by innovative, smart and locally relevant energy solutions. Renewable energy has a great potential to help countries become less dependent on energy imports, p. 34

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| Renewable energy for unleashing sustainable development |

create jobs and mitigate climate change while contributing to the diversification of the local economy and the creation of new income opportunities. The implementation of RE-based offgrid systems is currently hindered by economic barriers, such as energy policies subsidizing conventional energy systems but also by non- economic barriers including lack of coordination between different authorities and complexity of regulatory/support frameworks. The United Nations Industrial Development Organization (UNIDO) helps countries increase access to modern energy supplies, especially based on renewable energy, in particular promoting RE technologies for productive use, increasing the competitiveness of industries by reducing operating costs, and to reduce GHG emissions of industries by minimizing their fossil fuel dependence. UNIDO operates in three interventions areas: Mini-grids, Business Model and Industrial Applications. It also provides technical cooperation with local institutions which has already brought to important results as demonstrated by three successful examples of decentralized energy production systems in Zambia, Cuba and Ukraine.

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PROMOTION OF PRODUCTIVE USE OF ENERGY IN DEVELOPING COUNTRIES – AN OVERVIEW OF EXISTING APPROACHES Lucius Mayer–Tasch, Deutsche Gesellschaft für Internationale Zusammenarbeit (GTZ)

Productive use of energy (PUE) refers to agricultural, commercial and industrial activities involving energy services as a direct input to the production of goods or provision of services. It has the potential to create additional revenues for end users who can then afford to consume energy and pay for it or refinance the investment in an off-grid system; increases in p. 36

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productive energy use would also ensure sufficient demand for energy to providers and hence contribute to the economic viability of the energy system. Nevertheless, the evidence shows that a) the level of productive use in newly electrified areas is often disappointing and b) electricity connection as well as usage by small and microenterprises do not necessarily lead

| Promotion of productive use of energy in developing countries – an overview of existing approaches |

to the expected economic effects such as higher profits. This was shown by the GTZ/ESMAP study “Productive Use of Energy (PRODUSE) - Measuring Impacts of Electrification on Small and MicroEnterprises in Sub-Saharan Africa”. Energy access programs should therefore include targeted activities to promote productive uses that are economically viable. Mr. Mayer-Tasch presented an overview of five different approaches for the promotion of productive use in the context of electrification projects - ElectrificationPlus Approach, Call-for- Proposals Approach, Application-Centered Approach, PUE-Financing Approach and CrossSectorialApproach. He elaborated further on the most common: the “ElectrificationPlus” approach. This includes an analysis of the PUE potentialin the project area, the raising of awareness about this potential and the provision of services which are

complementary to the supply of energy, such as business and technical training, activities to facilitate access to finance and the establishment of links between endusers and equipment suppliers. Many actors can be involved in PUE promotion - ministries of energy, electrification agencies, NGOs, electric utilities – and efforts are needed from all of them. The cross-sectorial nature of PUE promotion requires a good coordination among their activities is of crucial importance. In fact, combined efforts from different actors can lead to relevant results, as shown by some examples from Thailand, Zimbabwe, Ghana and Peru.

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ENERGY POVERTY AND ENERGY ACCESS: GLOBAL CHALLENGES AND GOALS Alberto Piatti, AVSI

A common issue to all kind of infrastructural interventions – both soft and hard– is the “last mile”, the very last connection between the service and the beneficiaries. The only instrument which is capable to fill this gap is the “human being”. This presentation shows the commitment of AVSI Foundation in this process all over the world and focuses in particular on two successful examples of AVSI activity in “accompanying” people to social and economic changes in developing countries. The first example refers to the intervention of AVSI in the informal settlement of Novos Alagados, in the State of Salvador Bahia, Brazil. AVSI implemented a participatory process to facilitate the move to formal dwellings of about 135,000 people with important improvements in quality of life conditions and environmental impact. The process involved local institutions, electricity provider and local inhabitants. In particular, AVSI played an essential role in the mediation among the energy provider and households leading to provision of legal, safe and reliable electricity by the former and to the p. 38

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| Energy poverty and energy access: global challenges and goals |

drop of illegal access by the latter, with a reduction in energy consumption and expenditure. The second case refers to a district in the city of Maputo, Mozambique, where AVSI distributed 15,000 fuel efficient cookstoves to local population. Important results have been observed in terms of cost savings, reduction in biomass consumption (-60%) and emissions (-80% CO2-eq). The drop in indoor air pollution is likely to have impacts on respiratory diseases. AVSI played a fundamental role in persuading and accompanying people, in particular women, to the adoption of the new cooking facilities. The speaker underlined the importance of participation of beneficiaries in development processes which cannot be imposed, but need to be accompanied by human beings.

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ENERGY POVERTY AND CLIMATE JUSTICE

Andrea Poggio, Legambiente The proposal of “2,000-Watt Society” which estimated in 2,000 watts-equivalent per year, the average energy consumption by a single citizen in industrialized countries was theorized in 1998 in Zurich, Switzerland. This idea has spurred the need to reduce Swiss energy consumption and led to a referendum in 2008 which set the target of 2000-watt to all Swiss cities; this led to the constitution of an institutional plan to achieve this target, called “Energy Cities”. Currently this model is far from the situation in most developed countries, where per p. 40

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capita energy consumption is far above 2,000 watts per year: in Italy, for example, the consumption is more than 5,000 watt per capita, in China more than 3,300 and in the US electric consumption reaches the value of 13,000 watt per capita per year. In terms of emissions, the picture does not appear brighter. In fact, a 2013 study by the EEA (European Environment Agency) shows that each individual in Europe produces about 12 tons of direct and indirect (they account for 3⁄4 and are

| Energy poverty and climate justice |

due to goods produced elsewhere) CO2 per year; in order to achieve the target of maintaining the temperature increase by 2째C , per capita CO2 emissions should not exceed 2,1 tons per capita per year: the path to this goal seems to be very hard. In this context, renewable energies can play a fundamental role in reducing GHG emissions. In Italy, important results in this direction have already been achieved: the production of electricity from renewable sources has more than doubled since 2000, more than 500,000 solar roofs have been installed and, in 2013, 33% of the electricity consumed was renewable. To achieve the target of more efficient and sustainable use of energy, infrastructural improvements toned to be implemented, starting from urban areas where more than 50% of global population currently lives (it will be 75% by 2050). This implies the promotion of energy efficient buildings in

new or expanding cities, the renovation of existing ones in a way to make them more energy efficient and the establishment of plans for the construction of eco-friendly city districts. The presentation shows that, at the moment, the state of the world, in terms of energy use and air pollution is critical, but it also shows that changing is possible and some examples of good practices are given. A rethinking in the use of energy for productive activities and lifestyles is needed.

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rely on traditional cooking methods based on the use of biomass

Without speciﬁc policies to improve energy access

50 – 220 million people in sub-Saharan Africa, South and Paciﬁc Asia relying on traditional solid fuels and stoves

600 – 850 million people could remain without electricity in rural areas of the same regions

The achievement of universal access to modern energy can more than halve the volume of Particulate Matter 2,5 concentration by 2030, compared to 2005 values.

This would lead to a reduction of

universal access to modern cooking and basic electricity services is essential for sustainable development

but more eﬀorts are needed: investments of $65-86 billion per year till 2030

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22 million annual DALYs

(Disability - Adjusted Life Year, a metrics which combines mortality and morbidity eﬀects)

from household air pollution.

DISSEMINATION OF SOLAR HOME SYSTEMS

carbon beneďŹ ts:

US electric consumption reaches the value of 13,000 watt per capita per year.

In Italy the consumption is more than 5,000 watt per capita In China more than 3,300 watt per capita

In Italy, the production of electricity from renewable sources has more than doubled since 2000, more than 500,000 solar roofs have been installed and, in 2013, 33% of the electricity consumed was renewable.

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Energy Poverty and Energy Access

Case Studies & Initiatives

| Case studies & initiatives |

Luigi Sampaolo, eni Vice President Sustainability Stakeholders Engagement and Community Relations ENI’S CONTRIBUTION TO ACCESS TO ENERGY Eni is one of the major integrated energy companies in the world and it heavily operates in many countries in which energy poverty is felt as a major issue; this is true particularly for African countries, where eni is the leading company in the Oil&Gas sector, with about 900,000 barrels of oil equivalent (boe) in 2013. Given the nature of the company, eni’s contribution to local development focuses particularly on improving access to energy. This approach is also supported by two factors: firstly, eni recognizes access to energy as enabler for development. The second has historical roots: in 1952, eni’s founder Enrico Mattei and the Italian Prime Minister opened the first Italian power plant and the pipeline which transported gas to Turin was also built. These two “events” represented an important response to the electricity crisis in Italy after the war and a great boost to Italian industrial development. The internationalization of the company led to the updating, adaptation and replication of the model in international contexts where eni operates. In 2005, eni was the first company to invest in oil and gas supply in Africa, Nigeria, KwaleOkpai, where a combined cycle power plant of 480 MW was built, covering about 20% of the installed capacity of the entire country. In the Republic of the Congo, since 2007 eni has been working together with the local government to transform the gas produced in oil extraction in available electricity. The project saw the construction of the Centrale Electrique du Congo (300 MW, completed in 2010) and the renewal of the Centrale Electrique de Djeno (50 MW at full capacity since 2009), for a total of 350 MW of installed capacity, about 60% of the installed capacity of the country. Both plants are fueled by associated gas extracted along with oil, otherwise flared in regions (as Repubblic of the Congo and Nigeria) where there are no markets for gas. In the country eni has also invested in modernizing and expanding the national electricity grid, which, with its 550 km length, connects the plant in Brazzaville to Pointe Noire, serving about 400,000 people. Finally, in the Mozambique, within the framework of agreements made with the Country’s government, in 2013 eni undertook the commitment to build a 75 MW power station in the province of Cabo Delgado.

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Global Challenges, Integrated Solutions

| Case studies & initiatives |

Carlo Carraro, International Center for Climate Governance (ICCG) Director ICCG â&#x20AC;&#x201C; INTERNATIONAL CENTER for CLIMATE GOVERNANCE The International Center for Climate Governance (ICCG) is a joint initiative of Fondazione Eni Enrico Mattei and Fondazione Giorgio Cini and is an internationally recognized centre on climate change and on the issues related to the governance of climate. ICCGâ&#x20AC;&#x2122;s goal is to disclose to the public and to policy makers at local, national and international level, the results of scientific research and socio-economic breakthroughs in the areas of mitigation and adaptation to climate change. Each year, the ICCG observatory Best Climate Practices opens a contest to collect all the most innovative proposals aimed at addressing the problem of climate change. This year ICCG launches the 2014 edition of Best Practices for Climate Competition on the issue of Energy Poverty Alleviation. www.bestclimatepractices.org/contest/.

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| Case studies & initiatives |

Stefano Bologna, Director Operational Support Services at UNIDO – UNITED NATION INDUSTRIAL DEVELOPMENT ORGANIZATION UNIDO is the specialized agency of the United Nations that promotes industrial development for poverty reduction, inclusive globalization and environmental sustainability. In recent years, UNIDO has assumed an enhanced role in the global development agenda by focusing its activities on poverty reduction, inclusive globalization and environmental sustainability. In the area of energy access UNIDO promotes industrial applications of renewable energy in energy-intensive manufacturing SMEs and advises national and regional planners and decision makers in elaborating strategies for their industrial energy mix, with a focus on renewable sources. Below some examples of UNIDO’s Technical Cooperation Renewable energy based electricity generation for isolated mini grids in Zambia With a total budget of US$ 6,324,007 the project has installed a Biomass gasifier power plant for 500 kW of electricity generation, a small hydropower station to generate 1 MW of electricity and a Solar energy mini-grid with an output of 60 kW.

Delivery of Renewable Ukraine – Improving EE Energy Based Modern and promoting RE in the Services in Cuba - The agro-food and other SMEs case of Isla de la Juventud A large biomass gasifier plant (3.5 MW) for power generation

20 projects were preselected for Renewable Energies and Energy Efficiency investment

Four gasifier applications (about 6 MW thermal) to be placed at four industrial sites for heat production

Volume of investment – target 44 million USD by 2015

Wind farm to produce 1.5 MW of electricity

Total energy saved as a result of the project – target 20 GWh /year by 2015 Total energy generated by RE sources as a result of the project – target 30 GWh / year by 2015

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Energy Poverty and Energy Access

| Case studies & initiatives |

Pippo Ranci, WAME & EXPO 2015 President WAME & EXPO 2015 – WORLD ACCESS TO MODERN ENERGY WAME & EXPO 2015 is an association founded in July 2013 by eight leading European energy companies A2A, Edison, Enel, Eni, E.ON Italia, GDF SUEZ Energia Italia, Gas Natural Italia and Tenaris and the organizers of Expo 2015. The initiative has been created to take full advantage of the opportunity offered by Expo 2015 to achieve the two goals of increasing public awareness of the scope and consequences of the enduring exclusion from modern energy of a large share of the world’s population and promoting and supporting actions to close the “modern energy gap” by contributing to match demand and supply of projects addressing the energy divide. WAME & EXPO 2015 President, Pippo Ranci took part in the workshop “Energy Poverty and Energy Access: Global Challenges and Goals “ where he underlined the need for raising the awareness about energy poverty globally. Indeed, this is the aim of WAME which works as database that contains energy access projects, policies, case studies and publications which have helped increase access to energy services for households, communities and businesses mainly in Asia, Africa and Latin America. The database has an open source nature, which means that everyone can upload projects, policies or useful documents on the website: www.wame2015.org

p. 49

| Case studies & initiatives |

Giuseppe Onufrio, Executive Director at Greenpeace Italia GREENPEACE - Energy [R]evolution The event “Energy Poverty and Energy Access: Global Challenges and Goals “ was attended by Giuseppe Onufrio, Greenpeace Italia Executive Director, who explained to the participants two initiatives on access to energy that Greenpeace India has carried out, within the boundaries of the Energy [R] evolution plan. Energy [R]evolution is an energy analysis by the European Renewable Energy Council (EREC) and Greenpeace which has been published for the first time in Europe in 2005. The report, which has been updated, in 2007, 2008, 2010 and 2012 develops a global sustainable energy pathway up to 2050, a practical blueprint for how to meet CO2 reduction targets and secure affordable energy supply. Five key-principles have been identified to achieve the Energy [R]evolution: Ensure fair energy access for all Respect natural limits, in terms of emission produced, resources exploited etc. Phase out dirty, unsustainable energy Implement clean, renewable solutions and decentralise energy systems Decouple growth from fossil fuel use

Two cases in India On the basis of the five principles, many projects have been carried out or are still active for combating energy poverty in developing countries. Below the two cases shown by Giuseppe Onufrio at the event.

- The first is an international contest, called “Innovation Challenge” for developing a 1 HP solar FV powered portable water pump. This challenge has seen 1,500 people from 58 countries participating and three projects have been selected as winners. One of the three winning prototypes has already been built: it’s called the Atom Solar Suntrolley, a 1 horse power portable solar water pumping system which can replace diesel irrigation pumps for small farmers. - The second case is the “Dahrnai Live project”, which led to the construction of a 100 KW solar energy microgrid in Dahrnai, a village in Bihar’s Jehanabad that has not seen electricity for the last 30 years: now 2,200 people can count on solar electricity seven days a week.

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Global Challenges, Integrated Solutions

| Case studies & initiatives |

Alice Perlini, Expo 2015 International Affairs Department EXPO 2015 - FEEDING KNOWLEDGE Feeding the Planet. Energy for Life is the theme of EXPO Milano 2015. Assuring an adequate and sufficient nutrition to the entire world’s population is a challenge that cannot exclude universal access to energy. This is the reason why Expo 2015 draws attention to the issue of energy access and collaborated to the organization of the event. The workshop also represented an opportunity for Alice Perlini, from Expo 2015, to present Feeding Knowledge, an initiative within the boundaries of the Universal Exposition in 2015 to create an international research network on the issue of food security. Feeding Knowledge, developed by Istituto Agronomico Mediterraneo (CIHEAM-IAMB) and Politecnico di Milano, is the Expo 2015 Programme for cooperation on research and innovation on Food Security. The aim of the initiative, thanks to the creation of a technological platform, is to establish an international network of researchers in order to promote the transfer of knowledge on food security and support policy programmes that meet the needs of developing countries. The programme has identified nine local points (originally 12) in nine countries of the Mediterranean Area in order to build a strategy that allows developing countries to move forward in the process of sustainable development, in relation to the issue of food security. Local researchers in the nine countries were asked to focus on five priorities: sustainable natural resources management, Quantitative & Qualitative enhancement of crop product, Socio- Economic Dynamics and Global Markets, Sustainable development of small rural communities, Food consumption patterns: diet, environment, society, economy and health.

Five white papers were prepared on the basis of researchers’ contributions. The papers will flow into a programmatic policy paper at Expo 2015. Expo Milano 2015, supported by the Feeding Knowledge Program has also launched a call aimed at the recognition and promotion of “Best Sustainable Development Practices on Food Security”. All the best practices on Food Security admitted to the competition will be published and promoted through the Feeding Knowledge web platform. The 15 selected will have high visibility in the Expo Milano 2015 site: one identified as the most performant will become the subject of a movie produced by Expo 2015, the others will be illustrated in photo stories.

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p. 52

Energy Poverty and Energy Access

The Policy Recommendations and International Experts Suggestion Matrix

| The policy recommendations and international experts suggestion matrix: the structure |

The Workshop has been a unique opportunity to stimulate debate among the representatives of the different areas globally involved in the process of improving energy access, in order to identify challenges, solutions and a set of policy recommendations for institutions and policy makers. The “Policy Recommendations and International Experts Suggestion Matrix” is a tool proposed by Prof. Emanuela Colombo and revised with the contribution of Fondazione Eni Enrico Mattei and all the experts attending the conference. The Matrix aims at collecting all the key points arising from academic papers, case studies and best practices presented. Here below the structure of the “Policy Recommendations and International Experts Suggestion Matrix (PRISMA)” The Policy Recommendations and International Experts Suggestion Matrix

The Players Public Sector

Academics/ Private Sector (profit and non-profit) Research

Informal Organizations and Local Communities

International Organizations/ Institutions

Cross Cutting Topics

Economy/ Innovative Business models

The dimensions

Technologies/Innovations/ Methodologies Policies/Financial Mechanisms Anthropological dimension (rights, capacity building)

In the horizontal rows the Matrix lists the dimensions (or topics) which have been recognized to be specific features in any intervention aimed at improving access to energy: Economy and Innovative Business models Technologies, Innovations or Methodologies Policies and Financial Mechanisms Anthropological dimension (rights, capacity building) In the vertical columns the Matrix indicates the main players acting within the framework of improving energy access at global level: Public Sector Private Sector (profit and non-profit) Academics/Research Informal Organizations and Local Communities International Organizations/Institutions p. 54

Global Challenges, Integrated Solutions

| The policy recommendations and international experts suggestion matrix: the process |

The Policy Recommendations and International Experts Suggestion Matrix: the process Completing the Matrix has required three main phases: 1. Identification of the policy-relevant issues related to energy access, emerging from the presentations. 2. Definition and insertion in the Matrix of urgent policy recommendations and advices, using a participatory approach, during the Round Table session of the event. Summary and rationalization of the whole set of contributions, in order to position them correctly within the Matrix. Identification of cross-cutting topics which had been underlined by all the speakers and participants.

p. 55

PUBLIC SECTOR

PRIVATE SECTOR (PROFIT AND NON-PROFIT)

ACADEMIC RESEARC

- More Investment are needed - Subsidies + Microfinance - Exit strategy/ensure project sustainability

- Investments are needed - Evidence-based an - Subsidies + Microfinance causal effects - Quality and Quantity of energy provision - Not only academic - Access to formal market. No “free energy” to all - Understanding the different role of MNEs and SMEs - Customized PPP based solutions

- Quality and Quantity of energy provision - Home-Based Systems (HBS) - Hybrid solution energy mix - Technological solutions evaluation - Improve the use of solar energy-based systems (portable water pump, micro-grids etc.)

- Quality and Quantity of energy provision. - Home-Based Systems (HBS) - Hybrid solution energy mix - Improve the use of solar energy-based systems (portable water pump, micro-grids etc.) - Understanding the different role of MNEs and SMEs - Technological solutions evaluation

- Not only academic - Different indices m different results: as complexity of probl - More (quantitative)

- Coordination of policies - Lower energy prices - Fossil fuels subsidies to be revised - Understanding the different role of MNEs - Cost-effective analysis and SMEs - Decentralization issue - Political will - Ad hoc financing for relevant productive usage - Enable private sector’s investments: incentives, regulation and legal framework

- Capacity building & accompanying approach - Importance of lessons learned and mutual learning

- Impacts of mitigati policies on poverty

CS/ CH

nalysis of

INFORMAL ORGANIZATIONS AND LOCAL COMMUNITIES - Exit strategy/ensure project sustainability

- Exit strategy/ensure project sustainability - Best practices framework for Donors and International Organization’s - More Investment are needed

- Home-Based Systems (HBS)

- Best practices framework for Donors and International Organization’s

c scenarios

c scenarios means ssess the lems ) analysis

ion

INTERNATIONAL ORGANIZATIONS/ INSTITUTIONS

CROSS - CUTTING TOPICS

- Flexibility - Coordination/cooperation (among policies but also among different sectors, public, private, energy agencies) - Impact evaluation - Best + next practices - Multiple dimensions of energy provisions : Affordability Availability Quality Quantity Reliability Sustainability - Top-down, bottom-up approach - Last mile/national grid - From Green rhetoric to green inclusive growth - Sharing Knowledge and Awareness - Data Setting and Evaluation

- Women empowerment - HBS - Community empowerment

- Best practices framework for Donors and International Organization’s

PUBLIC SECTOR

PRIVATE SECTOR (PROFIT AND NON-PROFIT)

ACADEMICS/ RESEARCH

INFORMAL ORGANIZATIONS AND LOCAL COMMUNITIES

INTERNATIONAL ORGANIZATIONS/ INSTITUTIONS

- More Investment are needed - Subsidies + Microfinance - Exit strategy/ensure project sustainability

- Investments are needed - Evidence-based analysis of - Subsidies + Microfinance causal effects - Quality and Quantity of energy provision - Not only academic scenarios - Access to formal market. No “free energy” to all - Understanding the different role of MNEs and SMEs - Customized PPP based solutions

- Exit strategy/ensure project sustainability

- Exit strategy/ensure project sustainability - Best practices framework for Donors and International Organization’s - More Investment are needed

- Home-Based Systems (HBS)

- Best practices framework for Donors and International Organization’s

- Not only academic scenarios - Different indices means different results: assess the complexity of problems - More (quantitative) analysis

p. 58

- Capacity building & accompanying approach - Importance of lessons learned and mutual learning

Global Challenges, Integrated Solutions

- Coordination of policies - Lower energy prices - Fossil fuels subsidies to be revised - Understanding the different role of MNEs and SMEs - Cost-effective analysis - Decentralization issue - Political will - Ad hoc financing for relevant productive usage - Enable private sector’s investments: incentives, regulation and legal framework

- Capacity building & accompanying approach - Importance of lessons learned and mutual learning

CROSS - CUTTING TOPICS

- Impacts of mitigation policies on poverty

- Women empowerment - HBS - Community empowerment

- Best practices framework for Donors and International Organization’s

| The policy recommendations and international experts suggestion matrix |

1. Economy/innovative business models PUBLIC SECTOR Exit Strategy/Project sustainability Context: Energy access projects and programmes promoted by International Organizations and/or NGOs can have relevant effects in the villages and communities involved but, sometimes, the end of the operations coincide with the end of the positive effects. (Bologna, UNIDO) Recommendation: Upgrade business and technical know-how of key local stakeholders to ensure the sustainability and replicability of projects, through clear exit strategies. More Investments are needed Context: Universal access to modern cooking and basic electricity services by 2030 is achievable through investments of $65-86 billion per year till 2030 which corresponds to around 5% of global annual energy sector investments. (Pachauri et al 2013, IIASA) Recommendation: Foster investments in energy access by both private and public sectors Subsidies &/or Microfinance Context: To achieve universal access to energy by 2030, the role of microfinance is important in supporting electricity connection costs and cooking technology investments (+15%), but the impact of subsidies on modern fuels is more relevant and may account for 50% in improving access to energy. (Pachauri, IIASA) Recommendation: Find the right mix of microfinance and subsidy programmes to finance projects and programmes to improve access to energy. The mix depends on local conditions.

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| The policy recommendations and international experts suggestion matrix |

PRIVATE (PROFIT & NON-PROFIT) Access to formal market. No “free energy” to all. Context: Formal access to electricity leads to the recognition of the user and, therefore, to a formal and legal recognition of the individual, a fundamental element in informal communities. The creation of formal markets may encourage the creation of business activities helping people become “makers” of their own development. (Piatti, Avsi) Recommendation: Promote the emergence of a formal access to energy where people have to pay for it. Different forms of payment, other than money, may be investigated. Quality and Quantity of energy provision Context: The impact of the quality of power supply (less outages and more hours of supply) is very important for developing countries. Evidence provided by studies on several Indian experiences (10,000 rural households) show that the quality of electricity supply may be as important as connecting to a grid. (Chakravorty, Tufts University). Recommendation: Quality of electricity supply should be taken into consideration as essential element to drive investment in addition to the quantity of the electricity supplied. More Investments are needed (Rif. 1 - A) Subsidies &/or Microfinance (Rif. 1 - A) Understanding the different role of MNEs and SMEs Context: The role of Medium and Small scale Enterprises in the promotion of energy access is not adequately represented in the international debate. This is very urgent in the rural area where electricity may be supplied via different systems than national grid. Access to energy may be an opportunity to create local additional businesses powered by the local people. (Barbieri, Politecnico of Milan) Recommendation: It is necessary to underline the relevance of the role of smallmedium enterprises in increasing and improving world access to energy while creating income-generating opportunities and jobs. p. 60

Global Challenges, Integrated Solutions

| The policy recommendations and international experts suggestion matrix |

ACADEMICS/RESEARCH More evidence-based analysis of causal impacts Context: Often development processes and policy decision making are not guided by research on the impacts of programmes and interventions. The identification of causal impacts may shed light on the development mechanisms and support effective decision making. (Bonan, UCSC and Lab Expo). Recommendation: Policy decision making should be supported by more quantitative research and impact evaluation of programmes and interventions. Not only academic scenarios, but more synergies with other sectors Context: Sometimes the â&#x20AC;&#x153;academic worldâ&#x20AC;? is very far from reality and self-referential. Often synergies with private and public actors are not fully developed, but could be very beneficial.(Sampaolo, eni) Recommendation: The academia should put more effort in the communication and dissemination of research and more synergies with the public, private and institutional sectors should be achieved and vice versa, the public and private sector must be open to this dialogue with the scientific world.

INFORMAL ORGANIZATIONS & LOCAL COMMUNITIES Exit Strategy/Project sustainability (Rif. 1 - A)

INTERNATIONAL ORGANIZATIONS/INSTITUTIONS Best practices framework for Donors and International Organizations Context: Much attention is dedicated to business efforts in improving energy access and best practices frameworks often come from private sector activities. The effort of International Organizations in contributing to such frameworks could be better communicated and linked to the work of the private sector. (Sampaolo, eni) Recommendation: Promote communication and transfer of learning best practice frameworks between the private sector, international donors and organizations. More Investments are needed (Rif. 1 - A) Exit Strategy/Project sustainability (Rif. 1 - A) p. 61

PUBLIC SECTOR

PRIVATE SECTOR (PROFIT AND NON-PROFIT)

ACADEMICS/ RESEARCH

INFORMAL ORGANIZATIONS AND LOCAL COMMUNITIES

INTERNATIONAL ORGANIZATIONS/ INSTITUTIONS

- More Investment are needed - Subsidies + Microfinance - Exit strategy/ensure project sustainability

- Exit strategy/ensure project sustainability

- Exit strategy/ensure project sustainability - Best practices framework for Donors and International Organization’s - More Investment are needed

- Home-Based Systems (HBS)

- Best practices framework for Donors and International Organization’s

- Not only academic scenarios - Different indices means different results: assess the complexity of problems - More (quantitative) analysis

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- Capacity building & accompanying approach - Importance of lessons learned and mutual learning

Global Challenges, Integrated Solutions

- Capacity building & accompanying approach - Importance of lessons learned and mutual learning

CROSS - CUTTING TOPICS

- Impacts of mitigation policies on poverty

- Women empowerment - HBS - Community empowerment

- Best practices framework for Donors and International Organization’s

| The policy recommendations and international experts suggestion matrix |

2. Technologies/innovations/methodologies PUBLIC SECTOR Quality and Quantity of energy provision (Rif. 1 - B) Home-Based Systems (HBS), mini-grids and solar energy devices Context: The geography of territories and the low density of population in some remote rural areas represent an enormous obstacle in the effort to provide electricity through national or regional grids, due to economic and financial reasons. Home-based systems and mini-grids can represent not only viable but also cost-effective solutions to ensure a wider electrification.(Samad, The World Bank; Colombo, Politecninco of Milan; Onufrio, Greenpeace) Recommendation: Promoting and investing in the construction of grids and connection to grids may not be always the best solution for development. The impact of quantity or quality in electricity on local development and how off-grid solutions (home based systems, mini-grids, solar portable devices, etc) should be investigated to better drive investments and technology selection.

PUBLIC SECTOR Quality and Quantity of energy provision (Rif. 1 - A) Home-Based Systems (HBS), minigrids and solar energy devices (Rif. 2 - A) Understanding the different role of MNEs and SMEs (Rif. 1 - B)

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| The policy recommendations and international experts suggestion matrix |

ACADEMICS/RESEARCH Different indices means different results: assess the complexity of problems Context: Access to energy is a complex issue which involves numerous aspects. Metrics and indicators should also include measures of affordability of the access and the economic sustainability of connection for households. This helps to better assess the complexity of problems and to identify policies or interventions. (Valbonesi, University of Padova) Recommendation: Increase and improve research in the field of Energy Poverty and develop different/new metrics and indices. Not only academic scenarios, but more synergies with other sectors (Rif. 1 - C)

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Global Challenges, Integrated Solutions

| The policy recommendations and international experts suggestion matrix |

INFORMAL ORGANIZATIONS & LOCAL COMMUNITIES Home-Based Systems (HBS), mini - grids and solar energy devices (Rif. 2 - A)

INTERNATIONAL ORGANIZATIONS/INSTITUTIONS Best practices framework for Donors and International Organizations (Rif. 1 - E)

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PUBLIC SECTOR

PRIVATE SECTOR (PROFIT AND NON-PROFIT)

ACADEMICS/ RESEARCH

INFORMAL ORGANIZATIONS AND LOCAL COMMUNITIES

INTERNATIONAL ORGANIZATIONS/ INSTITUTIONS

- More Investment are needed - Subsidies + Microfinance - Exit strategy/ensure project sustainability

- Exit strategy/ensure project sustainability

- Exit strategy/ensure project sustainability - Best practices framework for Donors and International Organization’s - More Investment are needed

- Home-Based Systems (HBS)

- Best practices framework for Donors and International Organization’s

- Not only academic scenarios - Different indices means different results: assess the complexity of problems - More (quantitative) analysis

p. 66

- Capacity building & accompanying approach - Importance of lessons learned and mutual learning

Global Challenges, Integrated Solutions

- Capacity building & accompanying approach - Importance of lessons learned and mutual learning

CROSS - CUTTING TOPICS

- Impacts of mitigation policies on poverty

- Women empowerment - HBS - Community empowerment

- Best practices framework for Donors and International Organization’s

| The policy recommendations and international experts suggestion matrix |

3. Policy/financial mechanisms PUBLIC SECTOR Political will to prioritize energy access in the political agenda Context: Universal access to energy is not a priority in the national political agendas of several countries. This is a key condition for the realization of programs aimed at reducing energy poverty. (Bologna, UNIDO) Recommendation: Universal access to modern energy services is recognized as a key element in the international development agenda, as shown by the definition of a specific goal on access to energy within the Sustainable Development Goals. This should encourage the inclusion of the energy poverty issue also in national political agendas. Enable and support private sector investments: incentives, regulation and legal framework Context: Private sector investments for the expansion of energy supply are possible when the institutional and legal frameworks are favorable. Weak rule of law and property rights hamper investments. (Tavoni, FEEM) Recommendation: Governments should enable and support private sector investments in the expansion of energy services by guaranteeing adequate regulation and legal environment, while reducing bureaucracy. Coordination of policies within the different ministries and departments Context: It often occurs that national policies are not much coordinated among different ministries and departments. As a consequence, policies aiming at the same goal but promoted by different entities may be partial and ineffective, due to financial constraints. In addition, coordination of policies is also essential for a more integrated management of resources such as water, energy, food and land. (Pachauri, IIASA) Recommendation: Governments should devote more effort to the coordination of policies among different departments and ministries in order to be more effective in the achievement of common policy goals and effective ways to manage national resources. p. 67

| The policy recommendations and international experts suggestion matrix |

Implement cost-effectiveness analysis to support decision-making Context: Public policies are not always supported by adequate cost-effectiveness and cost-benefit analysis which may convey information on best ways of using funds to achieve a goal. (Bonan, UCSC & Lab Expo) Recommendation: Foster activities of cost-effectiveness and cost-benefit analysis in order to support policy decision-making. Consider centralized and decentralized decision making as a way to expand energy access Context: In some cases centralized decision making is necessary to implement big infrastructural projects, as a national electrification grid. However, in some other cases, decentralized solutions governed by local authorities could be more useful to achieve the objectives, particularly for lower scale projects in rural areas. (Colombo, Politecnico of Milan) Recommendation: Governments should identify the most appropriate level of decision-making and the different alternatives that need to be adopted all along the process of expanding energy access. Reconsideration of fossil fuel subsidies, in the light of green technology advances Context: Public subsidization of fossil fuels is still a very common practice in several countries, which does not contribute to the development of green technologies which, in some cases, may be competitive in the absence of subsidies. (Pachauri, IIASA) Recommendation: Public subsidization of fossil fuels should be reconsidered in the light of green technology advances. Ad hoc financing for relevant productive usage Context: Energy access for productive use is an important driver of local development, however it may be prevented by prohibitive connection and usage costs. (Mayer-Tasch, GTZ) Recommendation: Ad hoc financial support of relevant productive usage of energy may be very beneficial for local development p. 68

Global Challenges, Integrated Solutions

| The policy recommendations and international experts suggestion matrix |

Exploit a larger range of technological possibilities to expand energy access Context: In several countries there is a very strong interest in expanding electricity access only via grid. Other arising technologies are not taken in consideration, despite their potential.(Mayer-Tasch, GTZ) Recommendation: Ad hoc financial support of relevant productive usage of energy may be very beneficial for local development.

PRIVATE SECTOR (profit and non-profit) Lower energy prices Context: Affordability is a key aspect of access to energy as economic barriers to connection are still very high in several countries, however low prices disincentivize investments which are needed to expand the supply of electricity. Price discrimination through the introduction of different tariffs depending on the use can be helpful. (Chakravorty, Tufts University; Valbonesi, UniversitĂ di Padova) Recommendation: Pricing policies need to balance the opportunity of access to affordable energy and the enabling conditions for investments. Understanding the different role of MNEs and SMEs (Rif. 1 - B)

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PUBLIC SECTOR

PRIVATE SECTOR (PROFIT AND NON-PROFIT)

ACADEMICS/ RESEARCH

INFORMAL ORGANIZATIONS AND LOCAL COMMUNITIES

INTERNATIONAL ORGANIZATIONS/ INSTITUTIONS

- More Investment are needed - Subsidies + Microfinance - Exit strategy/ensure project sustainability

- Exit strategy/ensure project sustainability

- Exit strategy/ensure project sustainability - Best practices framework for Donors and International Organization’s - More Investment are needed

- Home-Based Systems (HBS)

- Best practices framework for Donors and International Organization’s

- Not only academic scenarios - Different indices means different results: assess the complexity of problems - More (quantitative) analysis

p. 70

- Capacity building & accompanying approach - Importance of lessons learned and mutual learning

Global Challenges, Integrated Solutions

- Capacity building & accompanying approach - Importance of lessons learned and mutual learning

CROSS - CUTTING TOPICS

- Impacts of mitigation policies on poverty

- Women empowerment - HBS - Community empowerment

- Best practices framework for Donors and International Organization’s

| The policy recommendations and international experts suggestion matrix |

4. Anthropological dimension (rights, capacity building) PUBLIC SECTOR Capacity building & â&#x20AC;&#x153;accompanyingâ&#x20AC;? approach Context: A key aspect for the sustainability of projects and policy interventions is the involvement of local actors and stakeholders who should be prepared to lead the project after the exit of the NGOs/IOs, through focused capacity building activities and an accompanying approach which enables local subjects to manage the initiative. (Bologna, UNIDO; Piatti, AVSI) Recommendation: Project and policy implementers should dedicate great effort to capacity building in order to ensure sustainability. Importance of lessons learned and mutual learning Context: Policy and project always convey key lessons which can be useful for the implementation of other similar ones and enrich general discussion even across different sectors and actors (for example public and private). However, the diffusion of lessons learned is not very developed and could be improved. (Susani, WAME & EXPO 2015) Recommendation: More effort should be devoted to the communication of good practice and lessons learned from project implementation. Such advices should be taken into consideration at the time of designing new interventions to avoid waste of resources and the perpetuation of ineffective practices.

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| The policy recommendations and international experts suggestion matrix |

PRIVATE SECTOR Capacity building & “accompanying” approach (Rif. 4 – A) Importance of lessons learned and mutual learning (Rif. 4 – A)

ACADEMICS/RESEARCH More research on Impacts of mitigation policies on poverty Context: Access to energy policies is also related to climate change mitigation policies which started to be important elements in national and international agendas, as suggested by the IPCC reports. However, the evidence of their impacts on poverty so far is quite scarce, although it would be very valuable information. (Pachauri, IIASA) Recommendation: More research is needed on the impacts of access to energy and climate change mitigation policies on poverty.

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Global Challenges, Integrated Solutions

| The policy recommendations and international experts suggestion matrix |

INFORMAL ORGANIZATIONS AND LOCAL COMMUNITIES Women empowerment and gender balance Context: Energy access policies can have an important influence on women’s everyday life, time allocation and income generating activities and may contribute to female empowerment and gender balance. Moreover, often women represent key players in many processes of technology shift. (Bonan, UCSC and LabExpo) Recommendation: Starting from the fundamental role of women in development processes, some aspects of energy access policies should be designed in order to have a greater impact on women empowerment. Community empowerment Context: Community empowerment refers to the process of enabling communities to increase control over their lives. Rural energy access can be an important ingredient in the process of social, economic and political change which is built on a bottom-up approach. Recommendation: Projects aiming to expand energy access to rural areas should involve local communities in the implementation phase, allowing to fully benefit and appreciate the potential for future development, leading to community empowerment. Home-Based Systems (HBS), mini-grids and solar energy devices (Rif. 2 – A)

INTERNATIONAL ORGANIZATIONS/INSTITUTIONS Best practices framework for Donors and International Organization’s (Rif. 1 - E)

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Energy Poverty and Energy Access

the Matrix cross - cutting topics

| The matrix cross - cutting topics |

In addition to the large number of topics which call specific actors to undertake actions in different areas of intervention, the debate among the experts underlined an extensive number of cross- cutting topics and recommendations which should be taken into consideration by the whole â&#x20AC;&#x153;universeâ&#x20AC;? of actors involved in increasing access to energy. Due to their cross-cutting nature, the following topics have not been assigned to specific cells within the Matrix. They represent the final list of wide spectrum perspectives that the experts wish to deliver to interested policy makers and relevant players in the field of access to energy. From Green Rhetoric to Green Inclusive Growth We must shift from the theoretic paradigm of Green Rhetoric to the real implementation of a green global growth. One possible step is understanding and promoting a new perspective of agent: the prod-users, consumers who also produce energy. This, however, requires a transition to more aware and proactive agents. We need to make big efforts in dissemination at the global level: world citizens have to be informed about best but also bad practices. This leads to a greater awareness globally but also avoids duplication of actions and efforts and, of course, duplication of mistakes. Multiple dimensions of energy provisions and need-based approach The issue of access to energy and energy poverty has multiple dimensions, which are related to energy provision and energy use, which depend on local needs. This means that the way in which energy is provided has to be related and modeled on the way energy is needed at the local level. The assessment of needs is a fundamental step. Energy provision should be accompanied by the analysis of the following main dimensions: affordability, quality (safety), quantity, sustainability, reliability and availability. Integrated and mixed strategies The issue of energy poverty is faced today through different strategies and perspectives; top-down and bottom-up approaches, last mile covering, national grid and autonomous systems, renewable sources based or hybrid systems are examples of different approaches to alleviate the problem of energy poverty. Integrating and coordinating these strategies depending on general and local considerations should p. 76

Global Challenges, Integrated Solutions

| The matrix cross - cutting topics |

guide the process of policy decision making; cooperation and not competition among approaches is the key to achieve the final goal of energy for all. Coordination and cooperation One of the key points highlighted during the Workshop, was the need for cooperation and coordination among the different players involved in the challenge, public and private sectors, academia, International Organizations and NGOs. Indeed, energy poverty is so urgent and so complex that different actors can no longer act in isolation: their efforts need to be put together to maximize efficiency and effectiveness. Best and next practices Best and next practices cannot be only limited to financial support, but need to consider technological and social dimensions too. We also need a paradigm change and a shift in innovation strategies: innovations should not be just imported, but should give greater importance to the context in order to be more local-based oriented. This may guarantee higher degrees of sustainability. Flexibility There is a need for flexible arrangements. Organizations (NGOs, international agencies, governments, etc) may run into the mistake of defining policies or financial interventions which are not adequate for targeted communities or villages, because not properly calibrated. Having different options which may work when adapted to the local context requires a strong effort and involvement of the implementer in choosing the best solution. This result will be achieved only through a high degree of flexibility and adaptability. Impact Evaluation Models and Approaches There is a need for more evaluation models and research in guiding both design and implementation of projects; moreover new instruments and models which allow to analyse and evaluate the impact of improved energy access in all the dimensions of development (health, job creating, improved education, etc) are necessary and should be better developed. p. 77

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Energy Poverty and Energy Access

CONCLUSION

| Conclusion |

From the debate on cross-cutting themes identified in the Round-Table session the steps needed for the future can be defined. In short, it may be said that we need to move from Green Rhetoric to a real green inclusive growth which is prodromal to sustainable development for the global society; in particular for developing or emerging economies which will experience, in the next decades, the highest growth in term of gross national income and population. Energy is one of the drivers of socio-economic development, thus clean, safe, reliable and affordable provision of energy is essential to sustainable development and therefore, when looking for solutions, multiple dimensions of energy provisions and a need-based approach have to be evaluated. In this perspective, integrated and mixed strategies represent the right pathway to progress with a number of partners among which coordination and cooperation need to be a key and daily working instrument. This is the only way to have best and next practices go even beyond finance and penetrate also the technological and social dimensions. A paradigm change and a shift in innovation strategies is also requested since innovations should be more local-based oriented rather than imported. This will claim for local capacity building and for a high degree of flexibility which need to become the leitmotif of any current strategy. Finally, impact evaluation models and approaches have to be capable to fully capture, in the long run, the real effects on local development related to any action devoted to tackle the issue of access to energy and, in case, to provide appropriate and model-based feedbacks and corrections to policy makers for future programs and actions. The issues arisen from the debate and the proposals made during the Round - Table session showed that the process of improving access to energy is characterized by complex dynamics and barriers that make interventions hard and not always truly effective.

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| Conclusion |

At the same time, participants drew attention to the need for greater efforts and to the need for a more cooperative action among all the players involved in order to give a more effective contribution to the access to energy process. The definition of a path for a multi-stakeholder dialogue and the identification of common solutions are the two high value outputs of the workshop. This publication, thus, represents not just a follow-up document of the two-day event, but an instrument of continuity between the starting point, i. e. the workshop, and the next steps, which aim at finding solutions for the improvement of energy access at the global level. The aim of this document, indeed, is to give guidance to all the actors called upon to provide their contribution on the topic. It Is a tool for businesses in the context of public-private partnerships within the Post-2015 Agenda, which sees, for the first time, companies directly involved in the achievement of the new global development goals. It Is also a call to the rationalization and integration of interventions by international institutions and organizations, but also a hint on how declining them, particularly in terms of approach and collaboration with local communities and organizations. Finally, it represents a stimulus for research to further investigate on specific topics in order to provide a continuous scientific support for more adequate and effective initiatives in all the sectors committed in increasing access to energy.

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Acknowledgments Jacopo Barbieri, Manrico Benelli, Stefano Bologna, Jacopo Bonan, Carlo Carraro, Gabriele Cassetti, Ujjayant Chakravorty, Emanuela Colombo, Matilde D’Amelio, Marzio Galeotti, Ilaria Lenzi, Lucius Mayer- Tasch, Stephen O’Connell, Giuseppe Onufrio, Shonali Pachauri, Stefano Pareglio, Alice Perlini, Fabio Petroni, Alberto Piatti, Lucia Piscitello, Andrea Poggio, Pippo Ranci, Sabina Ratti, Hussain A. Samad, Luigi Sampaolo, Laura Anna Susani, Massimiliano Tarantino, Massimo Tavoni, Paola Valbonesi. Participant Organizations Amici della Terra, City University of New York, Deutsche Gesellschaft für Internationale Zusammenarbeit (GTZ), eni, Expo 2015, Fondazione AVSI, Fondazione Giangiacomo Feltrinelli and LabExpo, Fondazione Eni Enrico Mattei, Greenpeace Italia, International Center for Climate Change Governance, International Institute for Applied Systems Analysis (IIASA), Legambiente, Politecnico di Milano, The World Bank, Tufts University, United Nations Industrial Development Organization (UNIDO), Università Bocconi, Università Cattolica del Sacro Cuore, Università Ca’ Foscari, Università di Padova, WAME & EXPO 2015. Editors Jacopo Bonan (Università Cattolica del Sacro Cuore and LabExpo), Emanuela Colombo (Energy Department, Politecnico di Milano), Stefano Russo (Fondazione Eni Enrico Mattei). Working Team Jacopo Bonan (Università Cattolica del Sacro Cuore and LabExpo), Emanuela Colombo (Energy Department of Politecnico of Milan), Ilaria Lenzi (Fondazione Eni Enrico Mattei), Alessandra Nigro (Fondazione Eni Enrico Mattei), Marcello Petruzzi (Housatonic), Stefano Russo (Fondazione Eni Enrico Mattei).

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Fondazione Eni Enrico Mattei, Fondazione Giangiacomo Feltrinelli within the LabExpo Project and Prof. Emanuela Colombo from Energy Department of Politecnico of Milan

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Fondazione Eni Enrico Mattei, Fondazione Giangiacomo Feltrinelli within the LabExpo Project and Prof. Emanuela Colombo from Energy Department of Politecnico of Milan