ESAP Phase I component "Support to AEPC" has been formulated as "Institutional Strengthening of Rural Energy Sector - ISRES" in the ESAP Phase II.

This component in ESAP Phase II in next five years (2007-11) aims at promoting the energy sector through coherent energy policies with a long-term perspective for rural energy service provision including electrification, networking of stakeholders, coordination, information dissemination, human resource development, promoting participation of civil society, and good management practices.

The scope of the component are broadly categorized into three elements:

1.   Support to development of a rural energy policy and institutional framework.

2.   To provide supports to AEPC and relevant institutions in harmonising the external development assistance that are already active and willing to get involved in the rural energy sector with a specific focus on electrification.

3.   To provide supports to AEPC and other partner institutions for institutional capacity building and human resource development.

The immediate objectives of the Component are, 

1.   Coherency in policy and coordination for delivery of rural energy services with focus on decentralisation and private sector.      

2.   Alignment of national and external development partners to the national rural energy sector policy and institutional framework.

3.   Relevant institutions are capable to coordinate, develop, implement, and monitor rural energy policy/programmes.

Establishing a framework and implementation of an action plan based on institutional, legal and financial framework to realise a cohesive rural energy policy. The framework would include development of consensus on the long-term rural energy vision and strategy to arrive at the vision through preparation of the “National Rural Energy Strategy” under the initiation of AEPC with participation of the National Planning Commission, Ministry of Environment, Science and Technology, Ministry of Finance and other relevant stakeholder. The “National Rural Energy Strategy” would ensure at least the following concerns:

i.     A long-term sustainability of the sector based on

a.    programme implementation by the private (including NGOs) sector;

b.    easy and long term financing of programmes by the financial sector  and by subsidy, where required;

c.    capacity building of the private sector and financial sector;

d.     quality assurance mechanism and technical assistance from government;

ii.    Social and regional equity issues along with efficient resource utilisation issues are addressed.

iii.   Harmonisation of the External Development Partners through establishing a framework for donor coordination for the rural energy solution provision chaired by relevant ministry/ies with a process facilitated by AEPC, jointly.

iv.   A coherent sector policy framework that allows for the existence of mini-grid electrification in harmony with national grid electrification (future grid connection of mini-grid), etc.

v.    Good governance and transparency through broad stakeholder involvements in policy formulation, and establishment of transparent quality assurance mechanisms.

vi.   Decentralised approach of provisioning rural energy solutions by establishing local support structures (with non-governmental and or/private sector participation) and integrating planning activities with local government authorities (i.e., District Development Committee and Village Development Committee).

vii.  The strategy for institutional capacity development in the rural energy sector will be based on developing effective institutional leaderships for rural energy development that can help in achieving efficient resource utilization and quality assurance services by having coordination, networking and facilitation mechanism in place. Promoting accountability, transparency and improved working environment (motivation, knowledge sharing, relationship and management structure) would be key areas of focus. Emphasis will be given to human resource development of all partner organisations with specific emphasis on AEPC.

Updated: 16 Nov 06