Cost Efficiency and Effectiveness of the Sitio and Household Electrification Program
-
Upload
govclustersecretariat -
Category
Documents
-
view
22 -
download
1
description
Transcript of Cost Efficiency and Effectiveness of the Sitio and Household Electrification Program
![Page 1: Cost Efficiency and Effectiveness of the Sitio and Household Electrification Program](https://reader036.fdocuments.us/reader036/viewer/2022062522/577cc3911a28aba7119669a0/html5/thumbnails/1.jpg)
Philippine Institute for Development Studies
Cost Efficiency and Effectiveness of the Sitio
and Household Electrification Program
Dr. Adora NavarroPIDS Senior Research Fellow
![Page 2: Cost Efficiency and Effectiveness of the Sitio and Household Electrification Program](https://reader036.fdocuments.us/reader036/viewer/2022062522/577cc3911a28aba7119669a0/html5/thumbnails/2.jpg)
Philippine Institute for Development Studies
Outline
• Overview• Findings • Recommendations
![Page 3: Cost Efficiency and Effectiveness of the Sitio and Household Electrification Program](https://reader036.fdocuments.us/reader036/viewer/2022062522/577cc3911a28aba7119669a0/html5/thumbnails/3.jpg)
Philippine Institute for Development Studies
Why the study was commissioned• In 2012, the DBM sought the
assistance of the PIDS in informing the zero-based budgeting (ZBB) approach that the Aquino administration is adopting.
• The Department of Energy (DOE)’s household electrification program and National Electrification Administration (NEA)’s sitio electrification program were included in programs to be scrutinized for the 2013 ZBB.
![Page 4: Cost Efficiency and Effectiveness of the Sitio and Household Electrification Program](https://reader036.fdocuments.us/reader036/viewer/2022062522/577cc3911a28aba7119669a0/html5/thumbnails/4.jpg)
Philippine Institute for Development Studies
Overview of the Programs• Sitio Electrification Program
(SEP) of NEA• aims to energize sitios
through on-grid electrification
• 2015 target: 100% sitios energized; covering at least 648,820 households
Year Targets2011 1,500 sitios2012 7,500 sitios2013 7,500 sitios2014 7,500 sitios2015 8,441 sitiosTotal 32,441 sitios
Table 1. Annual Targets of SEP
![Page 5: Cost Efficiency and Effectiveness of the Sitio and Household Electrification Program](https://reader036.fdocuments.us/reader036/viewer/2022062522/577cc3911a28aba7119669a0/html5/thumbnails/5.jpg)
Philippine Institute for Development Studies
Overview of the ProgramsA sitio is considered energized if it is successfully connected to the grid and at least 20 households are given electricity connections
A barangay which has at least 20 energized HHs is already considered an energized barangay. Given that a barangay can have as many as___ HHs, it is highly probable that there are still many HHs in a barangay which need to be connected. Example of energized brgy:
unenergizedHHs
unenergizedHHs
unenergizedHHs
20 energized HHs connected to the grid
![Page 6: Cost Efficiency and Effectiveness of the Sitio and Household Electrification Program](https://reader036.fdocuments.us/reader036/viewer/2022062522/577cc3911a28aba7119669a0/html5/thumbnails/6.jpg)
Philippine Institute for Development Studies
Overview of the Programs
Visayas DivisionLuzon Division Mindanao Division
NEA
NEA Board
Electric cooperatives
subsidiesDBM
subsidies
ATEO(ad hoc)
subsidies
subsidies
Figure 4. NEA-SEP Institutional Arrangement
![Page 7: Cost Efficiency and Effectiveness of the Sitio and Household Electrification Program](https://reader036.fdocuments.us/reader036/viewer/2022062522/577cc3911a28aba7119669a0/html5/thumbnails/7.jpg)
Philippine Institute for Development Studies
Overview of the Programs• Household Electrification Program
(HEP) of the DOE• energization of off-grid households
using mature renewable energy technologies such as photovoltaic solar home systems, photovoltaic (PV) streetlights and micro-hydro systems
• target: at least 2,000 households every year; 90% households electrified by 2017
• 2011: installed 2,750 households and 46 communal PV systems
• 2012: targeting 3,200 households and 75 communal PV systems.
![Page 8: Cost Efficiency and Effectiveness of the Sitio and Household Electrification Program](https://reader036.fdocuments.us/reader036/viewer/2022062522/577cc3911a28aba7119669a0/html5/thumbnails/8.jpg)
Philippine Institute for Development Studies
Overview of the ProgramsDOE DBM subsidies
Renewable Energy Management
Bureau
projects
Households
Community associations
projects
DOE field personnel,Team Energy
Foundation(social preparation)
Figure 5. DOE-HEP Institutional Arrangement
![Page 9: Cost Efficiency and Effectiveness of the Sitio and Household Electrification Program](https://reader036.fdocuments.us/reader036/viewer/2022062522/577cc3911a28aba7119669a0/html5/thumbnails/9.jpg)
Philippine Institute for Development Studies
Findings• NEA’s SEP:
cost efficiency ratio: Php530,809 per sitio or Php26,729 per household in 2011
cannot be compared with other programs because this is the first time that a sitio electrification program was implemented
• DOE’s HEP: cost efficiency ratios: Php11,100 to
Php14,500 per 25Wp PV (solar) system; Php18,300 to Php20,700 per 50Wp PV system; Php25,400 to Php27,700 per 75Wp PV system
average cost per unit: Php35,913 per household.
more cost efficient than the BEP (1999-2009) program which has average cost of Php42,029 per HH in 2010 prices
![Page 10: Cost Efficiency and Effectiveness of the Sitio and Household Electrification Program](https://reader036.fdocuments.us/reader036/viewer/2022062522/577cc3911a28aba7119669a0/html5/thumbnails/10.jpg)
Philippine Institute for Development Studies
FindingsBenchmarking relative to targets
• NEA’s SEP:– 2011 target: 1,500 sitios– 2011 accomplishment:
1,520 sitios• DOE’s HEP:
– 2011 target: 2,000 households
– 2011 accomplishment: 2,750 households
• Both SEP and HEP have surpassed their respective targets.
![Page 11: Cost Efficiency and Effectiveness of the Sitio and Household Electrification Program](https://reader036.fdocuments.us/reader036/viewer/2022062522/577cc3911a28aba7119669a0/html5/thumbnails/11.jpg)
Philippine Institute for Development Studies
Poverty impact assessment• SEP in 2006 and HEP in 2011: no direct poverty
impact assessment undertaken• Data on the poverty-related characteristics
of the household beneficiaries before and after they become recipients of the program are currently lacking; the gathering and compilation of these in standard formats had not been incorporated early on in the implementation design
• As an alternative: poverty impact of rural electrification in general, using data from the Annual Poverty Indicators Survey (APIS) 2010
• Finding - household access to electricity in rural areas tends to:
raise per capita income by nearly 36% raise per capita spending by nearly 34%.
![Page 12: Cost Efficiency and Effectiveness of the Sitio and Household Electrification Program](https://reader036.fdocuments.us/reader036/viewer/2022062522/577cc3911a28aba7119669a0/html5/thumbnails/12.jpg)
Philippine Institute for Development Studies
RecommendationsNote: Expanded Rural Electrification Team (ER Team)
set-up in 2003 and reconstituted in 2006; currently inactive
fat bureaucratic setup; quite expansive ER Team with many established groups and committees
• Re-activate the ER Team • Streamline the setup in order to
give the team more focus and greater accountability
• Assign the responsibilities to positions in offices rather than specific persons
![Page 13: Cost Efficiency and Effectiveness of the Sitio and Household Electrification Program](https://reader036.fdocuments.us/reader036/viewer/2022062522/577cc3911a28aba7119669a0/html5/thumbnails/13.jpg)
Philippine Institute for Development Studies
Recommendations
• Use household connections rather than sitios in target-setting and monitoring; sitios can be used as identifiers
• Include local economic development in the prioritization criteria
• On the connection fee acting as a barrier to the poor:
Include in the criteria: electric coop or community association to show evidence of having an affordable amortization package for the initial connection fees of households
![Page 14: Cost Efficiency and Effectiveness of the Sitio and Household Electrification Program](https://reader036.fdocuments.us/reader036/viewer/2022062522/577cc3911a28aba7119669a0/html5/thumbnails/14.jpg)
Philippine Institute for Development Studies
Recommendations
• Come up with strategies to boost absorptive capacity of electric coops given the acceleration of meeting the targets
• Continued (but more targeted) rural electrification given its poverty reduction impact
![Page 15: Cost Efficiency and Effectiveness of the Sitio and Household Electrification Program](https://reader036.fdocuments.us/reader036/viewer/2022062522/577cc3911a28aba7119669a0/html5/thumbnails/15.jpg)
Philippine Institute for Development Studies
Thank you!