Guiding principles for universal energy access: integrated distribution frameworks and their implementation

Abstract

Holistic approaches to energy access have the potential to break the current status-quo. They can accelerate energy access efforts, and make universal energy access possible through tight coordination among the national grid, mini-grids, and standalone solar systems, and with optimal allocation of technical, human, and financial resources among all three electrification modes. Realizing these benefits requires careful identification of the key bottlenecks in energy access and the design of adequate frameworks based on an integrated approach that includes institutional, regulatory, economic, financial, technical, and operational analysis of the distribution sector.

This dissertation demonstrates how integrated approaches can be applied in practice to advance the universal energy access agenda, through a detailed analysis of the Integrated Distribution Framework (IDF) and possible regulatory vehicles allowing for its implementation. From a study of past and ongoing African experiences in energy access, it shows that the IDF is a prime avenue to address key bottlenecks in distribution sector reforms for universal energy access. To explore the practical feasibility of integrated approaches, this thesis examines the role of concessions as a possible regulatory vehicle for the implementation of IDF. It examines the potential of utility concessions, briefly mentions the role of mini-grid concessions, and concludes with a much more thorough analysis of solar concessions as a promising mechanism to integrate off-grid solar into regulated approaches to energy access such as IDF.

The primary contributions from this work include establishing the strong connection between the concept of integrated approaches to energy access and past and ongoing experiences in Sub- Saharan Africa; the identification of the key high-level institutional, regulatory, economic, and financial challenges facing the implementation of the Integrated Distribution Framework; a review of the potential of territorial utility concessions for the implementation of IDF and outlining possible guidelines to design IDF-like utility concessions for universal energy access; a brief analysis of the limitations of current mini-grid concessions in energy access and the need for further reforms to bring mini-grid concessions into the realm of IDF; an assessment of the role of solar concessions in harnessing the full potential of solar in universal energy access, and the challenges facing planners in the integration of off-grid solar into IDF; finally, a framework for the design and implementation of solar concessions.

This thesis is grounded in a detailed study of past and ongoing African experiences and, to a lesser extent, Latin American and Asian experiences in energy access to inform distribution sector reforms in Sub-Saharan Africa. Most of the insights and recommendations can be generalized and applied to similar contexts.