This tool offers a structured sequence of steps to help energy practitioners facilitate the development of specific energy markets on the ground. It will help to build informal, dysfunctional and struggling market systems into inclusive, vibrant and sustainable ones that can positively impact large numbers of households, small businesses and community services. Each of the 6 steps provides practitioners with a sequence of activities to follow, based on experience, including: guidelines, training materials, top tips, and case studies, which can be adapted and tailored to the unique conditions of each energy market system and country context.
Energy markets are typically complex systems consisting of the interactions of a wide range of public and private market actors. To be able to deliver their required products and services to the required destinations, in the form they are needed and at an affordable price, they need to be able to freely coordinate, and compete, in an efficient and effective manner.
Recent evidence has highlighted the developmental benefits of increased access to a range of energy technologies and services, and how critical this is in enabling poverty reduction and gender equality. This has lead to a set of goals to be achieved by 2030 as outlined by the UN’s Sustainable Energy for All initiative, with energy access being included as a Sustainable Development Goal (SDG).
However, all households, small businesses and communities in the world achieving Total Energy Access in an affordable and sustainable manner requires the transformation of the energy markets that deliver the required energy technologies and services; many of which are currently absent, very informal or dysfunctional.
Reasons for the poor functioning of these energy market systems include:
This roadmap provides practitioners with a systematic approach to understanding the complexity of energy market systems. This includes the categorization of all its market actors and the identification of all the barriers that can limit its growth. It also provides a step-by-step guide and tools for facilitating the market actors to overcome each barrier themselves through a range of targeted interventions. This includes building the capacity of each market actor to allow them to coordinate and cooperate to deliver their energy products and services to their potential customers in the future, sustainably and efficiently.