1. African Rural Energy Enterprise Development Program (AREED) Approach to Impact Assessment Development and Energy in Africa First National Workshop September 1, 2005 ….innovating energy solutions…. Kwaku Wiafe Senior Project Officer KITE

2. ….innovating energy solutions…. DEA 1 st National Workshop-Accra Outline Objective of AREED program Objective of AREED program Approach to Impact Assessment Approach to Impact Assessment Presentation of sample results Presentation of sample results Conclusion Conclusion ….innovating energy solutions….

3. DEA 1 st National Workshop-Accra Objective of AREED program to develop sustainable energy enterprises that use clean, efficient and renewable energy technologies to meet energy needs of underserved populations to develop sustainable energy enterprises that use clean, efficient and renewable energy technologies to meet energy needs of underserved populations ….innovating energy solutions….

4. DEA 1 st National Workshop-Accra AREED Services Enterprise development services Enterprise development services Start-up and growth financing Start-up and growth financing –$500,000 invested in Ghana over 4 years

5. ….innovating energy solutions…. DEA 1 st National Workshop-Accra Overview of Impact Assessment Objective – assess how far program is promoting sustainable development Process -Standardized Qualitative and quantitative analysis Qualitative and quantitative analysis Financial and non-financial impacts Financial and non-financial impacts Additionality – Compare against baseline Additionality – Compare against baseline ….innovating energy solutions….

6. DEA 1 st National Workshop-Accra Qualitative analysis - Approach Stakeholder interviews: 15-20 for each enterprise – owner, staff, community representatives, customers, suppliers etc Stakeholder interviews: 15-20 for each enterprise – owner, staff, community representatives, customers, suppliers etc Ranking of impacts by each stakeholder Ranking of impacts by each stakeholder Calculation of aggregated ranking Calculation of aggregated ranking

7. ….innovating energy solutions…. DEA 1 st National Workshop-Accra Typical Interview (1): Community Representative Community benefits Community benefits –Infrastructural development –New or more reliable source of energy –Employment Sustainability benefits Sustainability benefits –Health benefits –Contribution to local economy –Environmental Impacts

8. ….innovating energy solutions…. DEA 1 st National Workshop-Accra Typical Consultation (2) – Customer Fuel Switching Fuel Switching –Previous source –Reasons for switching –Quantities purchased Sustainability benefits Sustainability benefits –Product quality –Cost savings –Supply reliability –Health benefits

9. ….innovating energy solutions…. DEA 1 st National Workshop-Accra Qualitative Analysis-Sample Results

10. ….innovating energy solutions…. DEA 1 st National Workshop-Accra Quantitative Analysis - Approach Review of: Review of: –Management and staff –Provision of service to customers and community –Environmental effects –Finance and operation

11. ….innovating energy solutions…. DEA 1 st National Workshop-Accra Quantitative Analysis: Sample Results (1)

12. ….innovating energy solutions…. DEA 1 st National Workshop-Accra Quantitative Analysis: Sample Results (2)

13. ….innovating energy solutions…. DEA 1 st National Workshop-Accra Quantitative Analysis - Chart

14. ….innovating energy solutions…. DEA 1 st National Workshop-Accra Conclusions Measures enterprise specific, community level and global level impacts Measures enterprise specific, community level and global level impacts Combines both qualitative and quantitative information Combines both qualitative and quantitative information Only measures impacts related to investment Only measures impacts related to investment

15. Thank You!