Access Investment Model (AIM)

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Presentation transcript:

Access Investment Model (AIM) Energy Access: From Talk, to Walk... to Run Civil Society Policy Forum 2016 Spring Meetings

The Scale of the Access Challenge 1.1 billion people lack access to electricity, and It is believed that $45 billion is needed annually to connect them by 2030 BUT There are varying levels of electricity access. How does required investment change with tiers? Tier 1 task lighting & charging 20 Wh/d Tier 0 no access Tier 2 general lighting, TV & fan 274 Wh/d Tier 3 tier 2 & low power appliances 1 kWh/d Tier 4 tier 3 & medium power appliances 3.4 kWh/d Tier 5 tier 4 & high power appliances 8.2 kWh/d 20 Wh/d 275 Wh/d 1 kWh/d 3.4 kWh/d 8.2 kWh/d

Access Investment Model (AIM) Demand Population, rural vs. urban split, industrial demand, tier of access provision and growth in demand over time On-grid / off-grid / mini-grid split On-Grid Costs Current tier access levels Daily load curve Off-grid Costs Technology mix Mini-Grid Costs Grid Generation Current & projected capacity mix by fuel & technology Annual load duration curve Optimal Dispatch Transmission & Distribution Population density (urban/rural) Length of lines Prices & Costs: Fuel Supply Technology Line Type User Input / Characteristics of System / Model Calculation AIM is a non-prescriptive tool that can be used by governments and stakeholders to estimate costs of and simulate pathways to universal access in a specific country or region. Electricity access tiers incorporated Nuanced demand representation Detailed supply cost formulation Complete sector value chain captured Scenario and sensitivity analysis possible

Advantages of AIM It is a tool developed specifically for decision-makers: Transparent and accessible Incorporates electricity access tiers Enables users to make realistic demand assumptions specific to context and consumer type; demand can change over time Includes detailed formulation of capital and recurrent generation, transmission & distribution costs Is county-specific and considers geography & population density A portfolio of different supply options for each region, electrification method, and tier can be specified Enables users to test various scenarios and conduct sensitivity analysis NOTE: AIM should not be used to replace detailed geospatial sector analysis

Investment Needs in High Impact Countries Countries shown represent 80% of access deficit in 2012 Globally, the investment required to achieve universal electricity access ranges from $1.5 billion to $52 billion per year

How can we run with access by 2030? Globally, the investment required to achieve universal electricity access ranges from $1.5 billion to $52 billion per year Investment requirements vary significantly per tier & per country This is largely impacted by factors such as land area and topography, population density, supply resources & technologies, and cost of transmission & distribution Options exists for a wide range of investment budgets, and Tier 1 to Tier 5 access investment requirements can differ by as much as 35X AIM can be used to help: Policy-makers transparently quantify the investment needed to achieve varying levels of electricity access most appropriate for their aspirations and political will Countries set access targets for themselves considering budgetary constraints CSOs can help advise on how to segment the country, how to prioritize regions given available resources and financing The reality is that the job will not be done by 2030; tier 5 access will not be provided to everyone by 2030. AIM can help you determine what CAN be achieved

Thank You