SPECIAL FEATURE SEAR THE POWER OF HUMAN CAPITAL MULTI-LEVEL CAPACITY BUILDING FOR ENERGY ACCESS Emanuela Colombo and Lorenzo Mattarolo, Politecnico di Milano; Stefano Bologna and Diego Masera, UNIDO b    S TAT E O F E N E R GY ACCES S R EPO RT  |  2 0 1 7 Copyright © 2017 International Bank for Reconstruction and Development / THE WORLD BANK Washington DC 20433 Telephone: +1-202-473-1000 Internet: www.worldbank.org This work is a product of the staff of the World Bank with external contributions. The findings, interpretations, and conclusions expressed in this work do not necessarily reflect the views of The World Bank, its Board of Executive Directors, or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work and accept no responsibility for any consequence of their use. 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Furthermore, the ESMAP Program Manager would appreciate receiving a copy of the publication that uses this publication for its source sent in care of the address above, or to esmap@worldbank.org Cover photo: © Malcolm Cosgrove-Davies | World Bank THE POWER OF HUMAN CAPITAL MULTI-LEVEL CAPACITY BUILDING FOR ENERGY ACCESS Emanuela Colombo and Lorenzo Mattarolo, Politecnico di Milano; Stefano Bologna and Diego Masera, United Nations Industrial Development Organization (UNIDO) INTRODUCTION O ver the past decade, the debate on access to ples, approaches, and lessons learned. The role of smart energy has tended to lean mostly on technology, distributed generation and local prosumers is also dis- finance, and policy as key drivers. Thanks to this cussed as an innovative example integrating capacity approach, there has been some progress in expanding building within the new framework of a transformative global energy access—although the goal of universal approach to access to energy. The paper ends with a set of access is still far off and is likely to remain so for the next recommendations for access to energy—including a pro- two decades. Scaling up the strategies for access to posed systematic approach to interventions that would energy requires a different perspective and an innovative fully utilize the power of human capital. approach to capacity building. In line with the ethical imperative of the 2030 Agenda for Sustainable Development of “no one left behind” and POWERING HUMAN CAPITAL FOR ACCESS its focus on people, the cross-cutting role of human capital TO ENERGY (individually and collectively, as communities and institu- Relevance of the human factor tions) becomes crucial both as a catalyst and a booster. Energy access is a pre-requisite for improving the quality of Indeed, without the proper human resources, it will be life and enabling socio-economic development. It fosters impossible to achieve a transformative change in energy access to goods and services (health and education), sup- access—one that is efficient, effective, equitable, empow- ports industrial processes (transformation of local re- ering, and long lasting. That is why human capital is now sources) and agriculture (agronomy and food processing), recognized as a core dimension for any strategy designed and may become an income generating opportunity for to reduce energy poverty at the global and local levels. local populations. Moreover, appropriate energy solutions The right skills and competencies are needed for the and technology choices must respond to the needs, design, uptake, and sustainable management of technolo- capacities, and aspirations of people and be absorbed gies, business models, and the policy framework. At the within the local culture, or adapted and later improved by same time, the introduction and adoption of new or the local population.1 improved energy technologies require new skills for instal- For these reasons, people should be at the center of lation, maintenance, and service. The innovative business any strategy to promote energy access and capacity build- models that form the basis of the new energy markets ing and are considered a key asset for achieving the goal require that the various actors (including consumers, in a sustainable manner (see Box 1). This viewpoint is even communities, policy makers, regulators, and financial insti- highlighted in a recent report by the International Energy tutions) understand their role and the key drivers. In Agency (IEA) and World Bank’s “Sustainable Energy for strengthening the role of people throughout the entire All 2015—Progress Toward Sustainable Energy,” which energy supply chain—from production to users—capacity includes capacity building as one of the four complemen- building and training activities become essential compo- tary themes that are crucial for making any progress in nents of any successful project aimed at enhancing energy broadening energy access. access. If properly designed, they develop the local exper- To date, there is still no systemic approach to capacity tise needed to replicate and scale-up successful initiatives, building that is specifically tailored to energy access. How- support ownership of stakeholders, and foster sustainabil- ever, the recent experiences of four international entities— ity beyond the withdrawal of external partners. UNEP, IRENA, UNHCR, and GEF—can at least provide This paper examines the power of human capital in some insights and possible general principles and expanding energy access and a possible multi-level frame- approaches that can drive any strategy in the field. A short work. It beings with the concept of capacity building and summary of their respective philosophies is reported in its evolution, and then moves to how human capital con- Tables 1 to 4. tributes to energy access, highlighting objectives, princi-   1  2    S TAT E O F E L E C T RI CI TY ACCES S R EPO RT  |  2 0 1 7 BOX 1 How the Concept of Capacity Building is Evolving Over the past 20 years, there has been a major rethink of the concept of capacity building. To begin with, the notion of “capacity” has evolved from one that focuses on the ability of organizations and people to be resilient and successful to one that zeroes in on self-reliance. Here, the emphasis is on the ability of individuals, organiza- tions, and societies to set and achieve their own development objectives, and the ability of human beings to perform, self-sustain, and self-renew. In this context, capacity building is a process to unleash, strengthen, and maintain such capacities—and a strategic means for long-lasting and autonomous development. There is also a recognized need to go beyond the direct equivalence that defined “capacity building as training,” and to extend the functional dependency of capacity building toward a wider vision of education as a fundamental human right. This approach is also in line with the original statement included in the 1992 UN Sustainable Development Agenda 21: “The ability of a country to follow sustainable development paths is determined to a large extent by the capacity of its people and its institutions that complements its ecological and geographical conditions.” Such a holistic vision includes various sets of actions like: (i) building abilities, relationships and values; (ii) strengthening the processes and the rules that influence collective and individual behavior; and (iii) enhancing people’s technical competences, soft skills, and attitudes to enable them to be proactive players for development. TABLE 1  United Nations Environment Program—Energy and environment nexus FOCUS DESCRIPTION Energy Interest United Nations Environmental Program (UNEP) has a strong interest in energy. On the one hand, the production and use of energy may induce a number of environmental problems at the local, national, regional, and global level. On the other hand, a lack of access to energy hinders the economic and social development of billions people. Capacity Building UNEP is working with countries to help them meet the challenge of sustainable energy from a life-cycle perspective. This includes varied approaches, like analyzing energy policies, climate change mitigation, energy sector reform, and industrial energy efficiency. One of the essential elements in their strategy is the UNEP Collaborating Centre on Energy and Environment (UCCEE)—a group of international scientists, engineers, and economists that provides technical and analytical support to UNEP and its developing country partners. Targets UNEP focuses on enabling decision makers to deepen the link between energy choices and sustain- able development, and helping financial institutions profit from the good investment opportunities available. It also works on strengthening an informal network of centers of excellence to build a tighter global community of sustainable energy practitioners. Keywords Diversification of approaches (including finance and policy), energy nexuses with other resources, networking. AN INNOVATIVE SCHEME BY UNIDO bution lines to a more flexible, upgradable, and diverse model that focuses on distributed energy generation Building local capacities through industrial based on renewable energy technologies (RETs). prosumers and renewable energy Indeed, the traditional energy chain will soon no longer Energy access is a means to achieve sustainable develop- exist. The energy supply chain from the generation plant ment and not an end in itself. Rather, the success of the to the consumer, once fairly straightforward, is evolving energy access initiatives will be measured by the improved into a complex, multi-layered system of a few large and health of the beneficiaries, number of new jobs created many small plants. Consumers are turning into producers, locally, number of lives saved, increased local/national transforming the energy conversion chain into a multi-di- economic output, and increased level of education—and mensional, multi-layered energy matrix that is growing not just kilowatts per hour of energy generated.2 To pro- more complex and articulated. vide universal energy access in the near future, a transfor- The search for effective solutions to increase energy mational approach to the existing energy system is access in developing countries has led to the recognition required. It will involve a switch away from a few large cen- that industries can and should play a crucial role. Industries tralized power plants coupled with widely extended distri- that generate their own energy can also increase their THE PO WER O F H UMAN CAPITAL: MULT I-LEVEL CAPACIT Y BUILDING FOR ENERGY A C C E SS   3  TABLE 2  International Renewable Energy Agency—Renewable energies FOCUS DESCRIPTION Energy Interest The International Renewable Energy Agency (IRENA) is an intergovernmental organization that supports countries in their transition to a sustainable energy future and serves as the principal platform for international cooperation, a center of excellence, and a repository of policy, technology, resource, and financial knowledge on renewable energy. Capacity Building IRENA operates on the principle that the process of empowerment needs to be comprehensive, issue-based, regional, participative, and accountable. In keeping with this principle, it supports the following approaches to capacity building: Readiness and capacity need to be assessed, given that renewable energy requires a systemic •  shift and additional skills and competencies that can: (i) apply to off-grid or on-grid; and (ii) be used at a variety of levels, such as residential, industrial, and small or large scale. A global repository of capacity building information should allow connections among the many •  stakeholders active in the renewable energy field in order to increase the way in which global resources, information, and experiences are shared and used. Regional capacity building initiatives should be conducted at the regional level and in close •  cooperation with local partners (such as the Renewable Energy Learning Partnership). Targets IRENA aims at supporting member countries formulate long-term capacity building responses that are integrated into national policies and processes. Keywords Comprehensive, issue-based, regional, participative, accountable. TABLE 3  United Nations High Commissioner for Refugees—Energy and the humanitarian aid FOCUS DESCRIPTION Energy Interest United Nations High Commissioner for Refugees (UNHCR) has recently defined a first strategy to promote appropriate household fuel and energy technologies (including the expanded use of renewable energy) to improve the protection and well-being of refugees. Capacity building is recognized as one of the essential elements to ensure the strategy’s success. Capacity Building The strategy will seek to integrate energy requirements into emergency preparedness and response. Moreover, innovation needs to play a crucial role in humanitarian settings, either for technological solutions or for funding opportunities. Data collection and documentation should be reported to distill good practices and replicate them in other contexts. Targets UNHCR believes that an effective strategy needs to be based on multi-stakeholder partnerships (including national entities) and should empower the humanitarian actors as well as the refugee community by also creating synergies with other sectors. Keywords Partnership, synergies with other sectors (the nexus approach), innovation, monitoring, reporting. TABLE 4  Global Environment Facility--From environment to energy FOCUS DESCRIPTION Energy Interest The Global Environment Facility (GEF) was established on the eve of the 1992 Rio Earth Summit to help tackle our planet’s most pressing environmental problems. Its interest in energy is thus mainly focused on the impact that the energy sector may create on the environment. Capacity Building The GEF strategy on capacity building is designed around a number of principles: Partnership needs to be promoted so that multi-stakeholder consultations and decision-making •  processes can be held at the regional level. A comprehensive and holistic approach is required so that capacity building is fully integrated into •  wider sustainable development efforts, and the dynamic nature of capacity building may be acknowledged by adopting a learning-by-doing approach. National ownership and leadership need to be acknowledged so that capacity building efforts are •  based on a sort of self-needs assessment Targets The GEF has become an international partnership of 183 countries, international institutions, civil society organizations, and the private sector to address global environmental issues. Keywords Partnership, holistic approach, dynamic nature, learning by doing, national and regional approaches. 4    S TAT E O F E L E C T RI CI TY ACCES S R EPO RT  |  2 0 1 7 income by selling excess energy and providing an essential There is a clear role for policymakers to support devel- community service. A win-win situation can be established oping industrial prosumers as an excellent driver for by increasing the efficiency of energy processes in indus- energy access. For instance, the ECOWAS Renewable tries through the use of waste; or applying any source of Energy Policy5 (jointly developed by the ECOWAS renewable energy, along with introducing electricity as a Regional Center for Renewable Energy and Energy Effi- revenue stream. The diversification of products and ser- ciency,1 UNIDO, RECP,1 and EUEI-PDF2) offers a model of vices by local industries increases their resilience and mar- guiding principles for a conducive policy development ket competitiveness and simultaneously contributes to for industrial prosumers. The regional policy provides a developing the local community. Local industries that both framework for the soon to be developed National Action produce and use renewable energy sources (such as solar, Plans. It specifies that: (i) ECOWAS members shall guar- wind, and bioenergy) for their own needs, along with sell- antee (through their transmission system operator and ing the excess energy to the surrounding community, can distribution system operator) the purchase and transmis- be defined as “industrial prosumers.”3 sion of all available electricity from renewable ener- This innovative model is based on the fact that local gy-based electricity producers; and (ii) grid operators industries possess the necessary business capacities to run have to contribute financially to necessary grid upgrades, an enterprise and therefore represent a low hanging fruit in provide a stable and long-term favorable pricing mecha- the expansion of energy services for the local community. nism, and ensure unhindered access to the grid for Nevertheless, on top of the business capacities, local renewable energy independent power producers (IPPs) industries need the support of energy specialists, techni- and public private partnerships (PPPs), along with adapt- cians, operators, researchers, investors, and supporting ing the grid code to incorporate RETs. The policy also institutions (such as governments, universities, and finan- requires reforming the legal and regulatory national cial organizations) to become effective industrial prosum- framework for member state power sectors. ers. Expanding capacity building initiatives to develop and retain a skilled workforce to meet these new opportunities Case studies will be critical to ensure that new energy markets are devel- Since 2009, UNIDO and its partners have undertaken oped to achieve universal energy access.2 many projects in developing countries that focus on build- ing local human capital to promote energy access in rural Drivers and barriers areas. As the four case studies highlight, this can be done As businesses and industrial power users move in this with a variety of renewable energy technologies (biomass direction, the reliable availability of power remains a major gasification, solar PV, small wind, small hydro, and biogas) issue in many areas of the world. In Africa, for example, a and in a variety of ways. recent survey found that reliable access to electricity was In all of the cases, the critical success factor is empow- the single largest issue for businesses.3 So far, the industrial ering human capital through capacity building and tech- sector’s response to this concern has often been simply to nology demonstration. In addition, the understanding of produce power via fossil fuel captive generators. But as the local market, combined with the entrepreneurial renewable energy technologies improve and continue to capacities needed to run a business, form the basis for come down in cost,4 the industrial prosumers model will introducing energy services. In Cambodia and Nigeria, become a clear business opportunity for many industrial energy access enables existing companies to earn addi- sites around the world. tional revenue and thus turn a profit; in The Gambia, it Interventions to promote sustainable energy access enables businesses to demonstrate corporate social markets must go beyond installation projects. Market responsibility; and in Kenya, it offers a way to not only development requires the availability of local capacity to enhance income but also reduce environmental impacts. support providers and consumers. Without a supportive environment for market participants, projects for energy A “win-win” human capacity based approach access can be perceived as less reliable or unworthy of Industrial prosumers represent a low hanging fruit for pro- investment. RETs are a unique business opportunity for the grams that aim at increasing energy access by developing local population only if the local capacities are properly energy companies. As IRENA puts it: “To date, the most developed. effective model for providing distributed energy services to local consumers in a replicable and reliable model Policy needs involves engaging small entities, such as private SMEs. The new model is particularly significant in remote areas With proper support and financing, small local enterprises where expanding the electricity grid is cost-prohibitive. can understand local markets and nimbly provide services The involvement of local industries in providing energy that meet customers’ needs”.6 With the right technical access reduces the risks and time associated with establish- assistance and regulatory and policy conditions, industrial ing new energy companies or community-based energy prosumers can play a leading role in boosting access to enterprises. Local entrepreneurs and industries are aware modern energy services in both the electricity and heating and capable of dealing with their market’s human, financial, and cooling sectors. Local prosumers offer not only the and legal conditions—and thus have a much larger chance technology and economic conditions but also the knowl- of success in providing modern energy services and could edge and experience to facilitate developing and expand- form the basis for developing the skills and competences ing the required human capital. locally needed. THE PO WER O F H UMAN CAPITAL: MULT I-LEVEL CAPACIT Y BUILDING FOR ENERGY A C C E SS   5  CASE STUDY 1  Rice Husk Gasification, Cambodia PROJECT PROJECT TYPE LOCATION Rice mill Rice husk gasification + Charchuk Commune, Ankor Chum District, rural electrification Siem Reap Province Rural Cambodia suffers from a very low electrification rate, and energy prices are high as fossil fuels are imported. In 2014, a 150 kW rice husk gasifier was installed to replace a diesel generator in a rice mill and connect an additional 300 households (700 people) to a local grid. MAIN OUTCOME: Through this fuel substitution, 900 tons of CO2 per year could be saved and energy costs could be reduced. The biomass waste, which had been a problem, is now an income generation opportunity for the operator. Furthermore, the rice mill owner now receives income from supplying electricity to the surrounding communities. HUMAN CAPITAL DEVELOPMENT: In this project the human capital development was done at several levels: The introduction of biomass gasification technology as a substitute to diesel generators required training on operations •  and maintenance. Technical training was provided to local manufacturers and technicians. Industrial prosumer model demonstration: The generation of excess electricity through the use of waste created an •   additional revenue stream for the company and interest from other companies to replicate the success. CASE STUDY 2  Biogas plant at Nyongara Slaughterhouse, Kenya PROJECT PROJECT TYPE LOCATION Biogas plant at Slaughterhouse waste Dagoretti, Kenya Nyongara Slaughterhouse for biogas production Dagoretti is a suburb of Nairobi well known for its slaughterhouses. In 2009, the high-level pollution in the Nairobi River due to the waste from the slaughterhouses almost caused their closure. Moreover, frequent power cuts have forced the abattoirs to use diesel generators for their operation. The project aimed at introducing a new technology, pursuing capacity building, and demonstrating the use of slaughterhouse waste in biogas production. In 2010, a 15 kW biogas plant was installed (with a high-performance, temperature-controlled digester, using solar heating) to replace a diesel generator and recover waste heat to replace wood and charcoal for hot water to clean the abattoir. The project was co-funded by the GEF and was based on a public private partnership between the abattoir, UNIDO, UNEP, the Kenyan Ministries of Environment and Industrialization and the Kenyan Industrial Research and Development Institutes. MAIN OUTCOMES: Economic benefits include reducing the cost of energy from $0.20 to $0.09 per kWh and cutting CO2 emission by 108 tons per year. The process also yields organic fertilizer as a by-product, bringing additional income to the abattoir. HUMAN CAPITAL DEVELOPMENT: At the institutional level, the government is planning to adopt this approach as part of its policy on waste management for Kenya’s slaughterhouses. The human capital development achieved through training in new technological solutions for energy production created business opportunities. The introduction of a new technology that could both reduce environmental impacts and generate additional income for the enterprise has triggered interest from several training institutions and firms to replicate the experience. CASE STUDY 3  Telecommunication Towers, The Gambia PROJECT PROJECT TYPE LOCATION QCell telecommunication towers Hybrid solar and wind 10 sites in The Gambia Qcell Company Limited is a mobile GSM operator in The Gambia, which began operating in July 2009. Before the introduction of RETs, Qcell estimated that 80 percent of its operational costs come from running the transceivers at the rural areas using diesel generators. In 2012, the project installed solar PV and wind turbines (total 84 kW) to power Qcell transceivers in 10 sites, in an effort to lower operational costs and stop pollution. The 4 x 1kW wind turbines were mounted on each tower, while solar PV systems were fixed to the ground. This hybrid system works 24 hours per day. Qcell agreed to provide power to each of the 10 health facilities where its new transceivers are located. MAIN OUTCOMES: The daily energy supply is enough to provide basic services for the critical areas within these health facilities (such as lighting and refrigeration), enabling Qcell to contribute to better health in the rural communities. RETs allowed for a greater mobile coverage combined with electricity for additional social needs (such as electricity for health centers or schools, local internet cafes, mosques, or community centers). HUMAN CAPITAL DEVELOPMENT: The use of renewable energy solutions (solar PV and wind energy) for telecommunication towers and local community services required local training on the mounting, operation, and maintenance of the equipment. The newly acquired skills represent an important asset for technicians in the Gambian market. 6    S TAT E O F E L E C T RI CI TY ACCES S R EPO RT  |  2 0 1 7 CASE STUDY 4  Highland Tea Factory small hydropower plant, Nigeria PROJECT PROJECT TYPE LOCATION Highland Tea Factory Small hydropower plant (SHP) Kakara, Nigeria The Highland Tea Factory in Kakara employs 350 to 500 workers, and the related tea plantation consists of 6,000 farms. Running on diesel generators and wood-fueled boilers for drying, the tea factory has been economically drained by the energy costs involved. The lack of power supply meant no new businesses or industries could be established. To revive existing economic activities and create additional income generating opportunities for the local communities, it was necessary to focus on providing reliable and affordable electricity for the area. In 2013, a small hydropower plant with a capacity of 400kW started operation. It is owned by Taraba State and managed by the Highland Tea Factory, supplying clean electricity to the factory and local communities. MAIN OUTCOMES: The new technology enabled the tea factory to explore plans to expand production capacity and provide additional job opportunities in the area. Moreover, the factory has reduced its environmental impact and cut its greenhouse gas emissions. Local technicians have been trained in the operations and maintenance of the SHP plant. A large amount of trees have also been saved since clean power replaced the burning of wood to dry the tea. HUMAN CAPITAL DEVELOPMENT: The introduction of a reliable and sustainable source of energy facilitated local economic activities and provided new jobs, and is now helping communities set up small-scale businesses such as milk and meat processing. Human capital development proved to be critical for this rural energy enterprise. Promoting industrial prosumers is important globally, oped all along the supply chain of the design solution, but it is particularly important for countries with limited and within this approach, linking skills and work needs grid coverage, reduced energy access rates, and an agri- to be a guiding principle. cultural-based economy with large and often untapped • Comprehensive approach. Capacity building for ener- waste streams. In light of the significant benefits that can gy access should encompass a comprehensive ap- flow from increasing access to modern energy and elec- proach based on human, scientific, organizational, and tricity services, policymakers should recognize industrial institutional capabilities. prosumers as a priority policy area and develop pro-active regulatory frameworks. The industrial prosumer approach • National/regional and local strategies. The need to is based on the understanding that qualified human capi- strengthen national capacities should be shared by all tal is required that needs to be promoted as a critical countries and should be able both to drive nation- resource to catalyze and maintain local ownership, foster al-based priority definition and regional coordination economic development, and ensure long-term impacts. and to assure the support to project-based or specific local actions. RECOMMENDATIONS FROM LESSONS • Teaching tools. A mix of tools may be used, varying LEARNED with the targets and the expected learning outcomes (including training, seminars, workshops, on-the-job tu- So what lessons can we draw in terms of insights of gen- toring, and site visits). eral validity for any capacity building action? Here, we draw on the literature on capacity building7, 8, 9, 10 and the A multi-level approach to capacity building for key references specifically tailored for access to energy energy access provided by IEA11 IRENA,6 UNHCR,12 and SE4ALL:13 These essential elements can then be grouped into three • Diversified targets. Capacity building should address macro-dimensions to help us discern a rational base for different beneficiary groups, which may have different capacity building and a multi-level structure of capacity access to training opportunities at technical, vocation- building for access to energy.3 al, or institutional levels. Three interconnected levels emerge (Figure 1), each responding to a crucial component of the sector: • Different skills. Capacity building interventions should be diversified to address the different needs for skills • Energy access is a long-term process that needs plan- existing at different levels of the energy supply chain ning and qualified human resources over a variety of and within different local contexts—and be aligned diversified subjects and requiring a multitude of skills. with the ability of the different target groups. • An integrated approach is crucial in the whole life-cycle • A multitude of stakeholders. Due to the diverse nature perspective, from identification to monitoring and eval- of the required competences, a variety of local, nation- uation. Capacity building strategies should also benefit al, and international stakeholders should be involved from a multi-stakeholder approach, including local (even beyond the traditional players of the educational teaching institutions,14 NGOs, and the private sector. systems). • To couple diversification with integration, ad-hoc strat- • Life-cycle perspective. People are the catalyst and the egies need to highlight different teaching tools for dif- drivers of change. Their capacity needs to be devel- ferent learning outcomes. These strategies should in- THE PO WER O F H UMAN CAPITAL: MULT I-LEVEL CAPACIT Y BUILDING FOR ENERGY A C C E SS   7  FIGURE 1 Multi-level breakdown for capacity building TABLE 5 Level 1: Diversified targets INDIVIDUALS ORGANIZATION GOVERNMENT Youths Public bodies (municipalities, National entities (ministries, Citizens local authorities) national authorities) Level 1 Educators Private sector (SMEs, Regional level Diversified Level 2 Technicians cooperatives.) (overarching organizations, targets for Comprehensive Researchers Civil society organizations networks) different skills approach and Entrepreneurs within a multi- life cycle Prosumers stakeholders perspective Public officers framework Civil society operators Level 3 Mix of strategies and tools for a variety links skills with labor needs. By establishing solid bridges of learning outcomes between the labor market and vocational training and skills development, capacity building becomes more effective and can contribute to closing the gap between job oppor- tunities and required skills.18 Moreover, beyond the technological capacities and competences linked to the implementation phase of any clude adequate financing over the long term to ensure energy access project, capacity building encompasses a ownership and sustainability of energy access initia- comprehensive approach, including the country’s human, tives. scientific, organizational, and institutional capabilities. The goal is to enhance the ability of a country or a body (or Level 1: Diversified targets. If the goal is diversifying tar- a project consortium) to evaluate and address crucial gets to benefit from any formal (governmental-based) or questions related to the economy, finance, and enabling informal (community-based organization) learning pro- policies—such as a full understanding of potential environ- grams15 initiatives should also include people working in mental and social impacts. Monitoring, evaluation, and small enterprises, rural industries, the informal economy, accountability are key to significantly increase the availabil- self-employment, unemployed, and irregular or precarious ity of high-quality, timely, reliable, and disaggregated data employment. Moreover, capacity building should propose and their ex-post analysis. This facilitates designing appro- a scheme of diversified skills to match today’s challenge on priate corrective measures and pursuing knowledge-based sustainable development. Competencies and skills are local research and innovation to ensure local ownership needed to improve employability and livelihood opportu- and thus the long-term sustainability of energy access ini- nities, reduce poverty, enhance productivity, and promote tiatives. inclusive sustainable development. To scale up access to energy, a systemic shift is required, Given the diverse nature of the competencies required, involving home-based systems, community-based ser- a variety of local, national, and international stakeholders16 vices, productive industrial or agricultural uses, small- or need to be involved. Agenda 203017 also highlights the large-scale systems, and off-grid or on-grid solutions. relevance of local institutions and civil society organiza- Capacity building needs to cover the complete life cycle of tions, as well as international cooperation and partnership, the different technological solutions proposed—ranging to support national plans and create networking among from awareness raising, assessment and selection of tech- competent people. Furthermore, capacity building is nology options, and preparation of business plans, to required across many sectors, organizations, and groups, product development, establishment of community-based and it needs to be diversified from country to country. By utilities, and setting tariff structures. For level 2 in our tax- expanding the original subdivision proposed by IRENA, onomy, the five main categories are: cultural, technologi- three major categories—individual, organization, and gov- cal, economic, political, and a cross-cutting dimension ernment—and within them, a further breakdown (youth, (Table 6). municipalities, and ministries)—we can formulate a more ready-to-use taxonomy (Table 5). It is worth underlining that Level 3: A mix of strategies and teaching tools. Coun- different players could be both targets and beneficiaries tries should pursue their strategies based on national prior- for capacity building actions—for example, women trained ities on capacity building—and whenever available19 in certain energy areas can also contribute to spreading embedding capacity building components within all the technology within their families and local community. existing projects20 and enforcing national or regional coor- dination. It is also crucial to promote individual actions fol- Level 2: Comprehensive approach and life-cycle per- lowing a decentralized and project-based approach for spective. People are the catalyst and the global driver of activities that are part of existing projects at the country change, and technological solutions need to be designed level. For access to energy, our level 1 and 2 breakdowns to meet today’s and tomorrow’s capacity requirements. A may be used to set up a level 3 structured matrix of inter- good way to do this is with a life-cycle perspective that ventions (strategies and teaching tools)—which combine 8    S TAT E O F E L E C T RI CI TY ACCES S R EPO RT  |  2 0 1 7 TABLE 6  Level 2: Comprehensive, life-cycle approach CULTURE TECHNOLOGY ECONOMY POLICY CROSS CUTTING Behaviour Ex ante assessment Business planning Enabling Networking Resources environment Local constraints Needs/loads Awareness Identification & formulation Entrepreneurship Regulatory Capacity building and Energy Solution Planning/ framework lifelong learning Optimization Implementation and field work Implementation Financial Scheme Coherence Operation and Maintenance Monitoring and Data Analysis Ex post Impact Evaluation Continuous Research and Innovation TABLE 7 Level 3: Mix of strategies and teaching tools TRADITIONAL PARTICIPATIVE LEARNING BY DOING Lecture Exposure Assignment Seminar & Workshop Assignment Joint project Visit e-collaboration Technical assistance e-learning Project work Tutoring on the job Informative campaign Business Case Local, regional lesson learnt traditional or participative education, and learning by power of human capital as one of the crucial assets of any doing (Table 7). community. These three levels can then be combined to help poli- As highlighted by Agenda 2030, innovation and shared cymakers come up with a multi-level approach that com- knowledge, as well as new competencies, capacities, and bines targets, skills, and strategies/teaching tools. Take the skills, are deeply needed to cope with today’s challenges. case of the target group being organizations, and skills The role and centrality of human capital is especially rele- requirement falling the economic category. As Table 8 vant within a transformative path for universal energy shows, the appropriate strategies and teaching tools for access. People-oriented and people-driven approaches public entities might be: technical assistance for a business need to be designed and adopted. In this context, capac- plan, local or regional lessons learned for entrepreneur- ity building becomes the leverage to achieve local owner- ship, and international exposure. ship and long-term empowerment—the true engines of the needed transformative path. We propose a systemic approach to capacity building FINAL CONSIDERATION that identifies: (i) a mix of target groups, skills, and stake- Achieving universal energy access is a long-term under- holders; (ii) a comprehensive life cycle approach, within the taking. Capacity building at both individual and institu- energy supply chain; and (iii) a mix of strategies and tools tional levels plays a key role in ensuring the success of that can be selected for the various targets and the energy access strategies and complementing the techni- expected skills to be generated or reinforced. This will facil- cal, financial, and political efforts. Capacity building itate the transformative change that is required to scale up needs to go beyond adding a training component to any access to energy and sustain local ownership, promote intervention. It needs to be designed to fully deploy the economic development, and ensure long-term impact. THE PO WER O F H UMAN CAPITAL: MULT I-LEVEL CAPACIT Y BUILDING FOR ENERGY A C C E SS   9  TABLE 8  Example of an economic multi-level approach for organizations ECONOMIC Business plan Entrepreneurship Financial Scheme Private company Participative Learning by doing Traditional Workshop Assignment Tutoring on the job ORGANIZATIONS Civil society Traditional Participative Traditional Workshop Seminar Case Studies Public entities Technical Assistance Learning by doing Participative Exposure Local, regional lesson learnt” NOTES 1. 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Energy and development: the role of academia in education, research, and technological cooperation for sustainability. Wiley Interdisciplinary Reviews: Energy and Environment (2016). 15. International Labour Office, Rural Development through Decent Work 16. International Energy Agency, Implementing Agreement on Photovoltaic Power Systems, PVS for Rural Electrification in Developing Countries – A Guide to Capacity Building Requirements, Report IEA-PVPS T9-03:2003 17. Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH, Impact and Good Practices of Human Capacity Development (HCD) in the Organisational Context, (Mannheim, March, 2013) 18. Cavanagh D, Shaw G, Wang L, Technical and vocational education and training, and skills development for rural transfor- mation, UNESCO-UNEVOC | Revisiting global trends in TVET 19. UNEP Division of Environmental Policy Implementation, Capacity Building for Sustainable Development: An overview of UNEP environmental capacity development initiatives, UNEP (December 2002), ISBN: 92-807-2266-2 20. Global Environment Facility, Strategic Approach to Enhance Capacity Building, GEF Council (November 2003) SPECIAL FEATURES To download the State of Electricity Access Report, overview, and Special Features, visit: http://esmap.org/SEAR