While there have been increased efforts in expanding energy access to underserved areas, particularly in sub-Saharan Africa and South Asia, a SEforALL report shows that there is still a wide electrification gap for health and educational facilities in these areas.
To date, most public institution electrification efforts have been grant-based, focusing on the procurement of solar PV assets. This focus has led to a bias towards equipment-ownership models, and because of relatively short project timelines, timely disbursement is inevitably prioritized over long-term operation and maintenance (O&M) planning. This approach can compromise the long-term sustainability of solar PV systems. Often, there are no maintenance plans and performance monitoring for these deployments over the long term. As the challenges with grant-based projects become more apparent, there is an increasing demand for innovative ways of ensuring sustainability.
Sustainable Energy for All (SEforALL), in collaboration with the Energy Sector Management Assistance Program (ESMAP), has designed a service-based delivery model. This performance-based service model leverages the expertise and capital of the private sector to deliver energy services to public institutions while ensuring financing and incentives are structured over the long term.
Given the level of investment needed to electrify health and educational facilities, private sector investments are essential to complement public resources. In addition, this service model provides a strong basis for raising the capital needed to bridge energy gaps.
Read the report here.