The document presents a new methodology that allows development practitioners to analyse energy market systems and develop effective interventions for supporting energy market development. Thus, the framework not only improves the understanding of how energy market systems function, but also provides tailored guidance on how to improve energy markets in order to increase energy access, investment and growth in a sustainable and efficient manner. In addition, the presented approach aims to help relevant stakeholders improve the coordination of their efforts, particularly with regards to the Sustainable Energy for All (SE4ALL) initiative’s goal of providing universal energy access for all by 2030.
The framework structures energy market systems into three main levels: The first level is the energy market or value chain which is in the centre of the framework. It is divided into four or five functions in which the market actors operate, from the project development through to the end-users of the energy services and technologies. Below the market chain is level two which includes all the secondary value chains that support and “feed into” the main value chain. These secondary value chains comprise inputs, services, and finance. The third level encompasses the enabling environment which provides the conditions under which the market chain operates. It includes political and regulatory, social and cultural, as well as financial and economic factors.