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The structure and content of the roadmap is based on a set of 3 principles centred on the concept of a market system. This system contains a diverse set of market actors that carry out a range of functions, which can be viewed through a market system map:

The roadmap structure is based on 3 principles, developed through years of experience: Facilitation, Participation and Systems Thinking. These principles support energy market systems to grow themselves with limited distortion, or having to provide external support in the long term.

These principles outline the type of support that needs to be provided to the energy market actors, both public and private, to create the necessary conditions to develop their own system. This includes the activities and interventions that make sense to them, and will contribute to making their energy systems more inclusive, productive and efficient in the long-term.

These 3 principles are like legs of a stool - if one is missing, or if they are not the same length, the stool will topple over or be uncomfortably. These 3 principles are essential to the roadmap, and each needs to be employed, concurrently, to achieve sustainable impact at scale.

  1. Systemic Thinking: Energy markets are complex systems of interdependent actors. To develop sustainable energy markets it is necessary to look at the system as a whole. This helps identify how each actor interacts and affects the others to overcome the market barriers. This leads to the most effective avenue to achieve deep and lasting market system change.
  2. Participation: When market actors, including the marginalized (low income and gender equal), meet and start work together in an environment of trust and respect they are best placed to assess their own energy system. They also have the strongest incentives to strengthen it through collaborative actions that are most likely to have the most lasting structural impacts.
  3. Facilitation: Energy practitioners who want to develop energy markets need to focus on providing temporary facilitated support to build the capacity of the market actors to improve their own system. This will allow them to keep building their own energy system in the future.

The following terms are also important within the Energy Markets Roadmap:

Energy Market System: this describes the entire network of public and private organisations and companies that interact with each other to deliver energy products and services. It includes three levels of actors as follows:

  • A central market chain of actors that manufacture, distribute and retail the energy technologies and services
  • Supporting inputs, services and finance each market chain actor requires
  • Enabling environment factors that impacts all the other actors, and can support poverty reduction and gender equality

Energy Market Map: this framework is used to identify all the actors within each of the 3 levels in an intuitive way, as outlined in Figure 1. This common framework helps the market actors better understand their own energy system. This is through mapping it in a systematic way, identifying all the actors who interact with each other, and the potential market barriers and opportunities that exist.

Figure 1 Generic Energy Market Map

The process of mapping an energy market system, which aims to deliver an energy technology or service to households, community services and businesses - from electricity for lighting and productive uses to space and food heating - helps the market actors organise the detailed information about their system in a standard and comparable way. This helps increase their understanding, steering their preliminary analysis.

Market Actors: these are the people, organisations, groups or companies who make up the energy system and carry out each function, shaping it with their activities and often deriving their incomes from it. Most actor employ one or more individuals who work for them, and who will represent their organization during the roadmap process.

Roadmap Steps and Tools

The roadmap consists of a sequence of 6 structured steps designed to inspire, guide and train practitioners on how to facilitate the development of energy market systems in practice, summarised as follows:

Step 1 Market System Selection:

This step is to help identify which energy market system to focus on to ensure the best use of resources and the greatest sustainable impact at scale.

Step 2 Preliminary Mapping, Strategic Design and Planning

This step involves the initial mapping of the energy market system, to identify the marginalised and key market actors, as well as the market barriers and opportunities and the potential design of future support interventions.

Step 3 Empowering Marginalised and Engaging Key Actors

This step involves working closely to support the most important market actors who are either marginalised or key to the development of the energy system in the future, ensuring low income and gender equality representation.

Step 4 Participatory Market Mapping

This step involves the organisation, delivery and follow-up of a series of events to support all the market actors to map their market together, in detail, and identify the barriers and support interventions.

Step 5 Participatory Planning and Facilitating Change

This step involves supporting the market actors to efficiently implement the support interventions they've designed themselves. This ensures the sustainable development of the 3 levels of the energy market system leading to the more efficient delivery of the energy technologies and services.

Step 6 Monitoring, Evaluation and Learning for Uptake

This final step provides guidance on carrying out monitoring and evaluation of the roadmap process on an on-going basis, to guide its implementation, and how to actively communicate and learn to ensure its impact is maximised.

Each step contains a number of sub-steps with guidance notes, processes and techniques to help energy practitioners support an energy market system, including the following:

  • Participatory mapping workshops
  • Establishment and support of Interest forums and Market Opportunity Groups (MOGs)
  • Use of catalytic subsidies

Important note: Despite its structured nature the roadmap is not a prescribed recipe. Each energy market system, country context and market actor is different and requires unique and tailored support. The roadmap provides a recommended sequence of steps, which should ideally be followed in order, and then adapted by the facilitation team to their specific energy market system, as required.

 

Roadmap’s Impact at Scale

Experience has show that achieving real impact at scale involves supporting the market actors to fundamentally transform the way that they interact and depend on each other across an entire energy system. When market actors come together to identify common barriers and opportunities in their energy system, and agree on actions taken together to overcome them, any changes will be more sustainable than if an outside organization design the solution themselves and then tries to gain ‘buy-in’ from the actors afterwards. Experience also shows that solutions designed and driven by the market actors themselves are more likely to be copied by other actors, as well as increasing the resilience of the market actors.

Changes in a market system are inherently more sustainable if the benefits they bring, in terms of efficiency, inclusiveness and equitability, are maintained after the efforts of an external facilitator ends. This is because the market actors will continue to adapt to emerging challenges and opportunities in ever evolving market conditions. The roadmap process has been specifically designed as a series of steps to help energy practitioner using it view facilitation as temporary, and to plan their exit from the outset, as summarized in Figure 2.

Figure 2 Planning your exit before you enter

Temporary Facilitator Roles Permanent Market Actor Roles

Hook interest and bring market actors together Show interest, come together

Facilitate relationship-building and build capacity of market actors as required Build trust, a shared understanding and vision of the market system, and new routines of interaction

Facilitate new business models, and provide catalytic support Collaborate to test and adapt new business models

Providing only backstopping; crowding-in and then exit New ways of working become routine, system wide copying and adoption takes place

At the beginning of the roadmap process the temporary facilitators need to take a lead in attracting the markets actors to come together. At every opportunity the facilitators need to build trust between the market actors towards greater collaboration through building their capacity. As trust starts to build new business models can be tested and adopted, leading to a process of change that is increasing led by the market actors themselves. The facilitators needs to gradually wind down their intensive support and instead focus on facilitating communication across the system to encourage wide copying and adoption.

Poverty Focus: The roadmap puts a focus on facilitating energy market systems to become more inclusive and equitable at its forefront. It is critically important for the economic benefits of the more productive, efficient, and competitive energy market system to reach the most marginalized and vulnerable, including gender equality.

 

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