Building energy access markets: A value chain analysis of key energy market systems

Building energy access markets: A value chain analysis of key energy market systems
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Michael Franz
To support action towards increasing access to modern energy services, in particular in Least Developed Countries (LDCs), EU Energy Initiative Partnership Dialogue Facility (EUEI PDF) and Practical Action Consulting PAC have developed a new analytical framework that allows conceptualising energy market systems through a systematic value-chain approach. The framework focuses on decentralised energy market systems of electricity mini-grids, solar PV lanterns and home systems, and biomass and LPG stoves and fuels, although it could be adapted to address other markets, including electricity grids, mechanical power and biogas. It breaks down each energy market system to be mapped into three main levels: its energy market chain; its inputs in terms of goods, services and finance; as well as its enabling environment factors. On this basis, specific barriers, which impede the delivery of the energy products or services, can be identified. This in turn enables the definition of targeted interventions for overcoming these barriers and thus unlocking market uptake. As opposed to generic statements about the success factors and barriers to energy market development, the framework thus allows us to analyse where specifically such aspects arise, and how they can be addressed effectively.
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  • A practitioner's journal on household energy, stoves and poverty reduction.

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