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Pro-poor public private partnership (5P)
5Ps - Rural Electrification Market Segmentation Approach
Model

Method
Profit oriented

 Strong power purchase
 Market driven tariffs

Commercial

Rural
Electrification
with Local RE
Resource

Hybrid – 5Ps

Business as usual

Cost recovery
Empowerment

Capacity & equity building
 Community participation
Awareness and education
Policy and institutional mechanism
 Power purchase reinforcement
Social project driven

Non commercial

Grants -Charity

 Project oriented
 Neglecting tariff and
power purchase

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Pro-poor public-private partnership (5Ps) by Hongpeng Liu, Chief of Energy Security and Water Resources Section, UNESCAP

  • 1. Pro-poor public private partnership (5P)
  • 2. 5Ps - Rural Electrification Market Segmentation Approach Model Method Profit oriented  Strong power purchase  Market driven tariffs Commercial Rural Electrification with Local RE Resource Hybrid – 5Ps Business as usual Cost recovery Empowerment Capacity & equity building  Community participation Awareness and education Policy and institutional mechanism  Power purchase reinforcement Social project driven Non commercial Grants -Charity  Project oriented  Neglecting tariff and power purchase

Editor's Notes

  1. ESCAP is currently executing projects designed to enhance access to energy services in rural areas using locally available renewable sources. To meet the goal, these ongoing efforts aim at promoting innovative business models and financing sources, such as the Pro-Poor-Public-Private-Partnership (5P) model and carbon financing, respectively. 5Ps help to reduce pressure on government budget, demonstrate the profit incentive to the private sector and, contributes in social and economic development.The 5P model works on a market segmentation approach (figure below) and treats the beneficiary community not only as users of modern energy services, but also as partners to the project. The regional initiative explores the potential for strengthening the policy, legal and regulatory frameworks of member States with a view to encouraging private sector participation in the rural energy sector, using locally available renewable sources to ensure market development and business continuity. The project also focuses on gender mainstreaming so that policies and programs reflect women’s needs and priorities in a better way and that these are supported by a more equitable distribution of resources.