Did you know that Electricity Supply Corporation of Malawi (Escom) has embarked on a pro-poor initiative of wiring and connecting rural households only to recoup the subsidized fees from prepaid units? The Ndawala initiative meaning ‘fast pace’ exemplifies Malawi Rural Electrification Programme (Marep) push to accelerate access for poor and vulnerable households.
“Extending the grid to rural is a costly investment, but it will be a waste of resources if people cannot afford connections and use the electricity to overcome poverty,” says Saidi Banda, spokesperson for the Department of Energy Affairs in Lilongwe.
As a pro-poor initiative gains ground, new evidence from Sustainable Energy for All (SEforALL) reveals that governments are uniquely positioned to target and support disadvantaged populations with safety nets for those living in energy poverty. The study released last Tuesday comes at a time the national census shows just about 12 percent of the country’s population is connected to Escom grid with some six percent using solar energy for lighting.
Access remains proportionately low in rural areas where only 4 percent access grid power 40 years since the establishment of Marep. the Energy safety nets for SEforAll produced in partnership with the Overseas Development Institute (ODI) and the Catholic Agency for Overseas Development (Cafod), shows that social assistance targeting excluded populations most in need of energy services could accelerate strides to end energy poverty.
This is a first-of-its-kind research series shining a light on how to integrate energy policy and social assistance to protect poor, vulnerable and marginalized populations. Like cash transfers, energy safety nets refers to government-led approaches to help poor and vulnerable people access essential modern electricity as well as clean fuels and technology for cooking in line with Sustainable Development Goal number seven(SDG7) to end poverty by ensuring sustainable energy for all by 2030.
“To achieve universal energy access, we must close the affordability gap and put the poor first. Public finance and governments play a key role in bridging this gap to connect the poor and vulnerable populations to modern energy services they can afford,” says SEforALL chief executive officer Damilola Ogunbiyi, the United Nations chief Antonio Gutteres’ special representative on Sustainable Energy for All.
The UN energy co-chair says governments can use the new research to inform and design effective energy safety nets helping to improve both people’s welfare and further progress on SDG7. Many countries round the world have implemented safety nets to make clean energy accessible and affordable for poor consumers being left behind because they cannot pay for both connections and service delivery tariffs.
The new report highlights lessons from Brazil, Ghana, India, Indonesia, Kenya and Mexico to identify pitfalls to avoid in future development of energy safety nets. The takeaways for policy makers and designers of energy-focused social assistance mechanisms affirm that household connections to local mini-grid or liquefied gas system, for example, do little good if an individual cannot afford the energy they provide.
“Distinct approaches are needed to support energy connections and ongoing consumption for example monthly electricity bills and regular fuel consumption,” it reads. it also advocates that subsidies and energy safety nets must respond to target communities’ unique energy needs, and accurate data improves targeting.
“A lack of evidence on the energy consumption levels within vulnerable households prevents policy makers from determining appropriate thresholds for subsidies. Additional data collection, including disaggregated by sex on the specific energy needs of the poor would enhance program design and allow polices to be more efficient.
The report also calls for flexibility and political commitment to deliver appropriate social assistance to those in need regardless of geography, economics, culture and gender.
Source: The Nation_Tuesday, 25 February, 2020_by James Chavula_Staff Writer.