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Ensure access to affordable, reliable,
sustainable and modern energy for all
By 2030:
■ Ensure universal access to affordable, reliable and
modern energy services
■ Increase substantially the share of renewable energy
in the global energy mix
■ Double the rate of improvement in energy efficiency
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SMART CITIES: NEED FOR A VILLAGE LEVEL ANALOGUE
SMART
VILLAGES
SMART
CITIES
47% of world’s
population and 70% of
the world’s poor live in
rural villages
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SMART VILLAGES: SOME KEY FEATURES
Key services: education, health , clean water and sanitation
ICT connectivity: distance learning and world’s knowledge base
Modern health services and tele-medicine
Provision of clean water and safe sanitation
Foster entrepreneurship in the provision and use of energy services
Capture more of the agricultural value chain
Create new businesses
Through ICT connectivity, participate in governance processes
At local, regional and national levels
Smart communities with strong rural/urban linkages
Building more resilient communities better able to
respond to shocks
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SHIFTING THE BALANCE OF OPPORTUNITIES
BETWEEN CITIES AND VILLAGES
Technological
advances
Game changing
technologies
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THE SMART VILLAGES INITIATIVE
Focus: sustainable local energy solutions for rural
communities
Policy advice: an insightful, ‘view from the frontline’ of
the challenges of village energy provision for
development, and how they can be overcome
Engagement: bringing together the key players:
scientists, entrepreneurs, villagers, NGO’s, financers,
regulators and policy makers etc:
What are the barriers?
How can they be overcome?
What messages to funders and policy makers?
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Project team:
Universities of
Cambridge and
Oxford
Key partners:
National Science
Academies and their
networks
Funding:
charitable
foundations:
CMEDT & TWCF
SMART VILLAGES INITIATIVE: A PARTNERSHIP
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SIX REGIONAL ENGAGEMENT PROGRAMMES
East Africa
Southeast Asia
South Asia
South America
West Africa
Central America/Caribbean /Mexico
12-18 month engagement
programmes:
Workshops → reports/policy
briefs
Briefing meetings
Capacity building event
Media workshop
Entrepreneurial competition
Final event pulling together key
stakeholders
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REGIONAL WORKSHOPS
East Africa
First East Africa regional workshop: Arusha, Tanzania,
June 2014
East Africa media dialogue workshop: Kigali, Rwanda,
November 2014
East Africa Community Leaders’ dialogue workshop:
Terrat, Tanzania, August 2015
Concluding high-level workshop for East Africa
engagement: Kigali, Rwanda, September 2015
West Africa
First West Africa Regional workshop: Accra, Ghana,
May 2016
The WEF nexus, Senegal, August 2016
Country focus – Togo, February 2017
Concluding high-level workshop for West Africa
engagement:, Abidjan, Cote D’Ivoire, March 2017
South Asia
Smart Villages in Nepal: Kathmandu, Nepal, April 2015
Southeast Asia media dialogue workshop, Seoul, June
2015
Smart Villages in Bangladesh: Dhaka, Bangladesh,
August 2015
Smart Villages in Pakistan: Islamabad, October 2015
State level brainstorms: Odisha & Ranchi, India, April
2016
Energy & Agriculture, Hyderabad India, September 2016
Southeast Asia
First Southeast Asia regional workshop: Kuching, Malaysia,
January 2015
Southeast Asia media dialogue workshop: Seoul, South Korea,
September 2015
Energy for off-grid islands: Bunaken island, Indonesia,
November 2015
Sustainable dissemination of improved cookstoves: lessons
from Southeast Asia: Yangon, Myanmar, December 2015
Smart Villages and resilience to natural disasters: National
University of Singapore, May 2016
The energy & water nexus, Philippines June 2016
Asia wrap up Workshop, Thailand March 2017
South America
First South America regional workshop: Lima, Peru,
January 2016
Sustainable energy for rural communities in Bolivia: La
Paz, Bolivia, April 2016
Media workshop, Paraguay, July 2016
Resilience, Ecuador January 2017
Central America, Mexico and Caribbean
Opening regional workshop, Dominican Republic,
November 2016
Off-grid energy in Haiti, January 2017
Country focus workshop Nicaragua May 2017
Final regional workshop for Latin America, Ecuador May
2017
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ADDITIONAL ENGAGEMENT EVENTS
Forward look workshops:
New technologies for off-grid villages – a
look ahead: January 2014
Potential breakthroughs in the use of
energy in off-grid villages: December
2015
Innovative business and financial
models: January 2016
Frontier energy storage technologies:
Edinburgh University, May 2016
Mini-grids, Bangalore, India July 2016
Webinars
Off the beaten path: rural energy and remoteness
Failure and off-grid energy access: why failure
matters to development
Energy entrepreneurs: business models for off grid
energy and social impact
The big chill: off-grid cooling for water, refrigeration,
spaces and more
Addressing energy governance: questions of scale
and scope
Women and energy entrepreneurship: business
models for off-grid energy and social impact
Scaling up gender: women in off-the grid energy
business models and supply chains
Going off the grid: disaster, resilience, and off-grid
energy
Growing smart villages: agriculture and energy for
development
Healthy villages are smart villages: Health, energy
and development
Refugees and energy: meeting the needs of
refugees and displaced people
A breath of fresh air: What’s next for clean
cookstoves?
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STUDIES AND LITERATURE REVIEWS
■ Book of Essays
■ Smart Villages Scoping Study
■ Electricity for off-grid villages: An overview of the current state of play
■ Smart Villages and Gender
■ Business models for home-based electricity services
■ The Smart Villages Initiative: Interim Review of Findings
■ Rubagabaga Mini-Hydro Public-Private-Community Partnership Project: Baseline data
analysis
■ Energy and agriculture for smart villages in India
■ The future of direct current electrical systems for the off-grid environment
■ Business models for mini-grids
■ Indigenous communities, ICT and rural communities: case studies in Tanzania and Sarawak
■ Making smart villages a reality
■ Electrification of health clinics in rural areas: challenges and opportunities
■ Education and the electrification of rural schools
■ Smart villages and democratic engagement
■ Smart Villages and stemming biodiversity loss
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DRAFT SUMMARY STATEMENT
1. Enhancing integration and coordination
2. Supportive policy frameworks
3. Building markets
4. Access to finance
5. Science and technology
6. Capacity building
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1. ENHANCING INTEGRATION AND COORDINATION
■ Current silo approach: missed synergies and reduced development
benefits
■ Move to much more integrated approaches addressing village
development holistically: framework provided by smart village
concept
■ Closer collaboration between all players: ministries – development
organisations – public and private sectors
■ Appoint senior champions in government with authority to establish
integrated working across ministries
■ More seamless experience for frontline workers reducing their
transaction costs and enabling them to scale up their activities
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2. SUPPORTIVE POLICY FRAMEWORKS
■ Ensure energy access initiatives fully integrated with other rural
development initiatives
■ Backed by high-level political commitment sustained through political
cycles
■ Stable and supportive policy frameworks providing clarity on roles
■ Coherent and firmly based in realities
■ Regulations provide simplified and streamlined procedures that
reduce transaction costs
■ National energy access plan
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3. BUILDING MARKETS
■ Build effective markets rather than give things away
■ Subsidies should be carefully targeted and time-limited
■ For mini-grids: support the establishment of effective public-private-
community partnerships
■ Support efforts to reduce mini-grid costs and increase revenues
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MINI-GRIDS: HOW CAN WE BALANCE THE BOOKS?
Technical developments reduce
equipment costs
Economies of scale: replication
Anchor loads absorb costs
Reduce set-up overheads
Reduce financing costs
Capital cost subsidy
Get the tariffs right: constraints of
affordability & equality
Stimulate productive enterprise to
increase incomes
Increase load factors: improved control
systems & productive enterprises
Increase level of connections
Operating cost subsidy
costs revenues
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4. ACCESS TO FINANCE
■ For universal energy access by 2030: increase funding by factor of 3
to 10
■ Private sector funds:
■ credit guarantees
■ Stable and supportive policy and regulatory frameworks
■ Enhance capacity and sector familiarity of finance organisations
■ Publication of payment records
■ Reduce transaction costs:
■ Project bundling
■ Cooperatives at village level
■ Off-grid development and innovation fund
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5. SCIENCE AND TECHNOLOGY
■ Support and enable closer collaboration between university
researchers and frontline organisations
■ Expose young people in villages to the new technologies: innovative
ideas
■ Develop better methodologies to evaluate development outcomes
arising from energy access
■ Key areas for R&D:
■ Batteries
■ Recycling
■ Intelligent control systems
■ New PV technologies
■ Plug and play capability
■ Increase appliance efficiency
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6. CAPACITY BUILDING
■ Evaluate value chains to identify shortfalls in skills and capacities: put
in place training programmes to address
■ Invest in business incubation and advisory support services
■ Awareness raising for villagers
Underlying concept for smart villages initiative is that access to modern energy services should act as a catalyst for…
A few words to explain the thinking behind the term ‘smart villages’
Much has been made of smart cities: a vision of the future and engine room for economies
But just under half of world’s population and 70% of poor live in rural villages
There is a pressing need for a village level analogue
Technology advances and game changing technologies, together with an integrated approach to development may shift the balance of opportunities between cities and villages
Mini-grids:
central power source to meet needs of village or cluster of villages
AC
Better able to meet power demands of productive enterprises
Some successes, e.g. micro hydro in mountainous regions of Nepal and Pakistan, and jungle interior of Borneo
But generally limited progress – pilots and demonstration plants, but not significant roll out: yet IEA evaluation points to mini-grids providing the major part of electricity supply to off-grid rural communities
How can we balance the books?
Reducing costs:
May expect technical developments to further reduce costs: PV and batteries particularly
Replicated plants rather than one offs will reduce costs
Anchor loads such as phone masts, mines, productive enterprises can absorb a significant part of the capital cost, providing some level of cross-subsidy.
Set-up overheads from due diligence etc. can be up to 30% - bundling, track records and replication should reduce
Reduce financing costs (interest rates) through building finance community confidence and risk mitigation
Some level of capital cost subsidy as interim measure – but need to do so in a way which maximises leverage.
Increasing revenues:
Governments may impose limits on tariffs, for example by a requirement to match grid-connected urban tariffs in the interest of equality.
Otherwise they may be pitched to maximise revenues in the context of affordability by different sections of the community and considerations of social equity
Stimulating productive enterprise increases incomes and villagers’ ability to pay more for more electricity – productive enterprises may be able to pay more
Increasing load factors increases the revenues arising from a given capital investment: improved control systems and productive enterprises help
Similarly, more houses connected in the village increases demand and consequently revenues. A problem in some schemes has been insufficient sign-up to the scheme
An alternative subsidy as an interim measure is to support the operating and maintenance costs, but this can be an open-ended commitment which can drain the resources of Govts and donors