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Background and methods

To date, there has been no in depth, independentreview of the rst ACP EU Energy Facility (EUEF

1) Projects. As a part of the ongoing Energy for all

2030 project the Stockholm Environment Institute

is conducting a study to acquire an understand-

ing of the impacts of these projects from the per-

spectives of the nal beneciaries and the project

implementers. The main objectives are to map the

EUEF 1 projects being implemented in Sub Saha-

ran Africa (SSA) in terms of project type, size, and

technology; to review the projects performance in

terms of their ability to provide access to energy ser-

vices for the nal beneciaries; to understand the

development and environmental impact of theseinitiatives and to learn about the challenges faced

by the project implementers. A combined approach

incorporating structured questionnaires, semi-

structured interviews and secondary data analysis

(project implementers own reports, EUEF monitor-

ing reports and web based research) was applied

to allow for an initial rapid appraisal of a sample

of EUEF projects implemented under the rst call.

The study divided Sub Saharan Africa into four sub

regions; West Africa, East Africa, Central Africa and

Southern Africa and projects from each region in

SSA were included in the initial review.

Initial Key Findings

Despite many challenges, the First EU Energy Facility (EUEF 1) projects analyzed here

are successfully delivering energy access to the poor in Sub Saharan Africa.

In terms of data availability, there appear to be issues of transparency with some

of the larger projects.

This initial analysis demonstrates that smaller scale projects (EUR 300 000

EUR 4 000 000) have had the most far reaching impact in terms of poverty reduc-

tion and are contributing to achieving the Millennium Development Goals (MDGs).

Smaller projects tend to be extremely cost effective in terms of cost per beneciary/

household and in terms of delivering a basket of technologies/ initiatives whencompared with larger projects.

The study has prompted a dialogue with the projects analyzed and implementers are

keen to continue this exchange in the future.

Energy for all 2030

Preliminary Analysis and Partner Dialogue on theImpacts of the First EU Energy Facility Projects in

Sub Saharan Africa.

This project is funded by The European Union


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Development Impacts

The stated aim of the EUEF is to address the energy

access gap in ACP countries to reverse the inter-

twined problems of poverty, underproduction and

environmental degradation. Therefore, it was logi-

cal to view and assess the impacts through the lens

of the Millennium Development Framework. Of the

10 projects reviewed so far, all appear to be having

a positive impact in terms of contributing to the

achievement of the following MDGs: Goal 1: Eradi-

cate extreme poverty and hunger; Goal 2: Achieve

universal primary education; Goal 3: Promote gen-

der equality and empower women; Goal 4: Reduce

child mortality; Goal 5: Improve maternal health

and Goal 7: Ensure environmental sustainability.

Concrete examples are provided in the followingsection to illustrate this.

Meeting the MDGs

Goal 1: Eradicate extreme poverty and hunger

In Tanzania, the International NGO HIVOS, in

partnership with local NGO TaTEDO is implement-

ing a ve year project nanced by EUEF to pro-

vide integrated modern energy services for rural

Tanzanians. The project, which is introducing a

diverse bundle of technologies and approaches

including efcient wood burning stoves, improved

charcoal kilns, the commercial use of solar dryers

and liquid biofuels, has already covered 11 out of

20 districts in Tanzania. The project has led to the

employment of 3500 small holder farmers who

are now engaged in jatropha curcas production. In

addition, the production, sale and maintenance

of stoves has provided more than 2000 jobs across

the districts covered. The Percentage of the

rural population in Action areas living in poverty

line has reduced from the 2003/04 baseline data

(UNDP report) of 39% to 32% in year 5 of the ac-

tion. Since the project began the daily income of

beneciaries has moved from less than 1$ a day to

more than 1.5$ a day and it is expected to contin-

ue. (Interview with TaTEDO project implementer)

Goal 2: Achieve universal primary education

One of the smallest projects in terms of total fund-

ing received is currently being implemented in the

Wajir district in North Eastern Kenya by local NGO

ALDEF. The project is promoting the use of alterna-

tive and sustainable energy for rural households

and institutions. The technology selected is solar

PV and as of March 2011, 17 solar units had been

installed. As well as providing access to water for

more than 7000 households in the area, the project

has brought about an improvement in the quality

of education in the target area. So far, more than

600 students in 15 schools are beneting by having

access to lighting through the solar project which

enables them to study after dusk.

Woman using sewing machine driven by solar energy (Plan International)

Goal 3: Promote gender equality and empower

women

In Southern Ethiopia, the NGO LVIA is implement-

ing a project to provide poor rural households with

access to energy services through the installation of

biogas for cooking. This initiative has had a particu-

larly positive impact on the quality of life of women

and girls. Prior to the implementation of the project,

women in the project communities typically spent

more than 8 hours per day cooking on inefcient,

smoky stoves and gathering fuelwood. The introduc-

tion of biogas for household cooking has resulted in

women and their daughters having more time avail-

able to engage in other activities such as the produc-

tion and sale of handicrafts.

Goal 4: Reduce child mortality & Goal 5: Improve

maternal health

In the Bayelsa State of Nigeria, local NGO Develop-

ment Outreach has used solar energy to pump water

for distribution to rural communities, resulting in


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cover that would otherwise be felled for rewood

and charcoal is now being conserved and the

project has reduced local annual deforestation by

half (from 400 000 to 200 000 ha).

Cost and Beneft

One of the reasons that the smaller projects are

having such a broad development impact in their

communities is that they tend to deliver a tailor

made package in terms of approaches and tech-

nologies for addressing energy poverty. In the

projects analyzed here, this nuanced approach

to energy access was frequently noted in various

forms whether addressing both fuel supply and

demand side constraints simultaneously (e.g. by

implementing efcient cooking stove projectsside by side with participatory approaches to

community forest conservation), or providing

training and capacity building for entrepreneurs

and small businesses to design and deliver par-

ticular technologies and services to their commu-

nities. In every case, the starting point was a local

problem analysis and design of targeted interven-

tion together with all stakeholders. Where electric-

ity grid extension projects are implemented,

improvements in the quality of life of the beneciar-

ies, particularly in terms of health. The project has

enabled 9000 people, who formally depended on

stream water for drinking and cooking to access reli-

able, clean and potable water. Prior to the project be-

ing implemented, the presence of human and animal

waste in the stream meant that water borne diseases

such as river blindness and bilharzias were prevelant

in the communities. Now, with more than 90% of

households in the community using pumped water

for drinking, cooking and bathing, the incidences

of water borne diseases have decreased dramatically.

This has led to improved health for mothers and

children.

Goal 7: Ensure environmental sustainabilityIn 2007, Concern Universal began implement-

ing the Msamala Sustainable Energy Project in the

Balaka district of Malawi with the overall aim of

reducing poverty and extreme hunger in the area

through the introduction of fuel efcient cooking

stoves. To date, more than 9 000 households (25 785

people) are benetting directly through use of the

new stoves. The use of wood saving stoves is easing

pressure on forests. Approximately 40% of the forest


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the benets are rarely as diverse1. Given the broad

development impacts in terms of the numbers of

beneciaries reached and the diverse and targeted

solutions offered, it is suggested here that investment

in small scale energy access projects represents real

value for money (see Box 1 on previous page for costs

per nal beneciary of the small scale EUEF 1 projectsreviewed as compared with that of larger EUEF grid

extension projects).

Challenges experienced by project implementers

Securing and administering EUEF nancing is often

challenging, particularly for the smaller organizations

interviewed. It was noted by the project implement-

ers that raising the co nancing required for EUEF

grants can pose problems, particularly given the cur-

rent global nancial landscape. In addition, the pro-

cess of procurement of goods and equipment appears

to be a major constraint for some projects, particu-

larly in terms of the complexity of preparing tender

documents and the tender and awarding process.

Components for energy systems are non-convention-

al goods, often unavailable in local markets and not

manufactured in the countries listed in the EC rules.

In such cases, projects need to make a special request

to the EC for derogation which entails a lengthy pro-

cess, often incurring delays to the project.

Next Steps

The Stockholm Environment Institute will continue

to review EUEF 1 projects implemented in Africa us-ing the same methodology with the aim of providing

a more comprehensive understanding of the impacts

and perspectives of both the implementers and nal

beneciaries. Our intention is to provide a more

critical review of the various categories of projects

and, to this end, particular attention will be given to

examining the progress and impact of the larger scale

projects in meeting the stated objectives of the EUEF.

A very positive outcome of this initial study phase

has been the creation of a platform for dialogue with

the project implementers and SEI intends to engage

with this important network of African civil society

actors as the project develops.

Authors

Fiona Lambe: [email protected]

Lord Adusei: [email protected]

Key Recommendations

The EUEF as a nancing mechanism is delivering energy access to some of the

most marginalized sections of African society and should, therefore, be maintained

and scaled up.

Any future monitoring and evaluation of the EUEF should focus on the impacts in

terms of poverty reduction and should select appropriate indicators and methods for

this; absolute gures in terms of nal beneciaries reached tell only part of thestory.

Such assessments should aim for a disaggregated approach and include direct

interviews with the nal beneciaries and other stakeholders.

Further research is needed to understand the comparative cost effectiveness of

the various types of energy access projects.

SEI, through the Energy for All 2030 Project, is well positioned to contribute to

future work in this area.

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Energy for All 2030 project partners:

1Brew-Hammond, A, (2010) Energy Access in Africa, Challenges Ahead, Energy Policy 38, 2291-2301

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