Integrated distribution framework: guiding principles for universal electricity access

Abstract

Universal access to electricity is hampered by failures in the distribution segment of the power sector in many low-access countries. Viability challenges have hindered the mobilization of the substantial public and private investment needed to expand electricity access, while the recent growth of off-grid solutions has taken place largely in silos. To reach universal access by 2030 - as targeted under Sustainable Development Goal 7 - a new business model for distribution is needed that leavesno- one-behind, ensures permanence of supply, integrates the various electrification modes (on-grid and off-grid), and is aligned with the long-term development of the power sector. Advancing these principles, this paper proposes the Integrated Distribution Framework (IDF) built around the idea of an entity - public, private or a partnership - that is responsible for undertaking distribution activities in a given territory (e.g., through a concession) and with a mandate to deliver universal access within its service area by using an appropriate mix of electrification modes with a viable business plan supported by cost of service regulation, viability gap funding and adequate risk mitigation. Parts of the IDF have been successfully implemented across the developing world, and its structure and scope can be adapted to country contexts to scale electricity access.