Once the long-list of energy market systems has been developed, a set of manageable selection criteria against which to judge them against each other, should be developed and used. The criteria should cover several important factors, including the long-term economic opportunities each energy market provides and the potential of each energy market to impact poverty and gender equality. The balance between these two factors enables the selection of an energy market system that has the potential to grow in an inclusive and equitable manner.
A template has been developed, in Annex 1, to help the facilitation team discuss and agree on the most important selection criteria that will then be used to assess and rank the long list of energy market systems being considered. The template provides space for the explanation of each criteria choice to ensure a clearly argued and transparent decision is made. Under each criterion, a small number of questions (3-5) should be agreed on to help steer the data collection and discussion process. The criteria should be kept to a manageable number, such as 3-4, although should always include Economic opportunity and Potential impact on poverty, summarised in the following sections.
This concerns the economic performance of an energy market system and how it is expected to evolve in the future, including the following issues:
This criterion is concerned with the inclusiveness and equitability of the market system, and whether its growth and development is likely to lead to poverty reduction and gender equality, including the following issues:
Other cross-cutting and context specific issues such as social transformation and environmental sustainability, including greenhouse gas emissions, are also very important depending on the values and priorities of your organisation and partners, and government agencies and main donors, such as the following:
Social Transformation: Will the development of the energy market system lead to positive changes in the attitudes and relationships of certain social groups towards socially excluded groups and promote political, social and cultural equity and empowerment?
Environmental Sustainability: Will the development of the energy market system lead to significant environmental benefits, such as through reduction in deforestation, scarce resources or greenhouse gas emissions?
As selecting an energy market system never occurs in isolation, in particular the pressure of fundraising and maintaining relationships with donors, the facilitation team may choose to add a criterion to reflect the strategic importance of each energy system.