7. Barrier identification and analyses: processes and tools 15 min Chapter 3 Ivan Nygaard, Ulrich Elmer Hansen

Barrier identification and analysis, projects and tools 1.Organising the process 2.Screening of barriers 3.Listing all identified barriers 4.Selecting the most essential barriers 5.Decomposing the selected essential barriers 6.Logical deduction of barriers (problem tree)

Organizing the process of identifying barriers Follows the general TNA set-up: – National consultants as process facilitator Seek close cooperation with the sectoral working groups Possibly form technology- specific working groups. Stakeholder consultation is recommended Workshops, written feedback, bilateral communication.

Screening of barriers What is currently preventing wide-scale diffusion? Start by conducting a broad review desk study: – Policy papers – Regulation – Consultant reports – Industry reports. Supplemented by: – Additional interviews – Bilateral meetings – Stakeholder consultation  To obtain deeper insights.

List of all identified barriers Financial and economic: – High cost of capital, low IRR, technology considered risky Market conditions : – Few local suppliers, market control by incumbents Regulation: – Over-bureaucratic procedures, corruption, rent-seeking. Information: – Limited awareness of technology, missing feedback Technological: – Few local references, low product quality.

Select the most essential barriers From the longer list of barriers identified: – Point out the most important barriers for technology diffusion – Killer (non starter), crucial, important, less important, insignificant – Delete the non-essential barriers. Prioritize and rank the essential barriers in a hierarchical order In workshops: agreement by consensus or majority vote – Workshop participants give barriers a mark from 1 to 5 – Result list is ranked according to sum of scores – E.g. bottom third deleted.

Example: Mini-hydropower plants 1.Inadequate access to financial resources 2.High cost of capital 3.No comprehensive and strategic energy policy 4.Insufficient institutional framework 5.Insufficient capacity in Ministry of Energy 6.Energy needs of rural population not addressed 7.Insufficient skilled manpower for O&M 8.Disincentives to foreign investment. Relative importance of barrier

Decomposition of the key barriers High interest rate High cost of capital Interest rate of 15%/y. for households Short-term loans

Decrease in water availability for competing purposes High demand for water Limited acceptance of drought tolerant crops in community Fluctuating income opportunities Insecure food availability Unstable crop yields Restricted access to and availability of seeds and other inputs Unstable market access Poor road infrastructure i.e. during/following excessive rains Improved seeds more expensive than traditional seeds Low volume of improved seeds on the market Low awareness within communities Information not available in communities Causal relations between barriers Logical Framework Approach Starter Problem (Cause/effect) Effects Causes more causes to be identified Root cause more causes to be identified in next slide

Limited acceptance of drought tolerant crops in community Low awareness within communities Information not available in communities Causal relations between barriers Logical Framework Approach Starter Problem (Cause/effect) Causes Poor access to TV Low literacy level Poor extension service Low rate of electrification Few TV broadcasting masts Causes Limited acceptance of drought tolerant crops in community Low awareness within communities Information not available in communities Poor access to TV Low literacy level Poor extension service Few TV broadcasting masts

Barrier identification and analyses: processes and tools Summing up 1.Organising the process 2.Screening of barriers 3.Listing all identified barriers 4.Selecting the most essential barriers 5.Decomposing the selected essential barriers 6.Logical deduction of barriers (problem tree)