Lessons Learned from Rural Energy Programmes with PURE Approaches

A review of renewable energy programmes with PURE approaches, supported by UNDP-GEF, UNDP, GEF and other donors, governments, and other organizations, provides some insights to the lessons that are beginning to emerge. As many of the programmes are still under implementation, or have very recently been completed, it is still too early to assess their long-term impact. However, some initial pointers are possible to identify:

• Energy and productivity: By focusing on developing capacity within the production chain, and not exclusively within the energy supply chain (as with traditional RETs programmes) the long-term demand for energy is better secured and hence the viability of the energy supply scheme.

• Markets for goods: Without demand for goods within a local or distant market, sales of increased quantity or quality of goods is impossible. Proper market assessment is imperative for programmes aiming at including a productivity element in their design.

• Inclusion of public services in community systems: A purely market-driven approach is virtually impossible to achieve in poor rural settings. Programmes with a cross sector approach, where both public and private interests are taken into account stand a greater chance of success. This means that a PURE project will inherently become more complex than traditional GEF RETs projects.

• Ensuring proper financing structures: By focusing on building viable community structures (and not only promoting RETs) business development services is integrated in the supply chain. Impacts of policies on off-grid energy supply and RETs also have great influence on to what extent private sectors actors are willing to take the risk to enter the off-grid energy supply market.

In particular, the following PURE programmes have been reviewed: