More than US$165 billion investment is needed per year for the electricity sector in developing countries. However this only represents 33% of investment needed to achieve universal access by 2030. Although governments continue to play a critical role in improving energy access, they are often ill prepared to bridge the investment and technological gap. The role of the private sector is becoming increasingly important worldwide, with new models demonstrating that the private sector can respond adequately to the task of delivering modern energy services. Increasingly, small, medium sized enterprises (SME) are proving to be very effective service providers.
Energy SME Development, a core ESMAP program, provides technical assistance to client countries to enhance MSME’s productivity as both providers and users of modern energy services.
Energy SME Development, a core ESMAP program, provides technical assistance to client countries to enhance MSME’s productivity as both providers and users of modern energy services.
The primary initiative under this sub-component is Energy Access for the Urban Poor, a partnership with Cities Alliance that aims to promote productive uses for modern energy services to improve access and affordability in urban slum communities.
The key objective of this initiative is to create and sustain a network of energy practitioners to support development of MSME as users and providers of modern energy services for slum upgrading programs. In line with Cities Alliance’s approach of a national policy dialogue which brings together community based organizations, local and national government policy makers, ESMAP has adopted a bottom up approach to capacity building of practitioners to foster locally owned plans. This will align local industries and skills, engage traditional and non-traditional stakeholders and support decision makers in policy implementation.
The ESMAP-funded capacity building activities will introduce:
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Learning-by-Doing
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Learning-by-Analyses
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Learning-by-Sharing
These approaches will improve transfer of knowledge between energy practitioners. The program also aims to leverage external resources including international best practice delivered through a platform of south-to-south knowledge exchange and the establishment of a Community of Practice.
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