Fact Sheet
U.S. Agency for International Development
April 28, 2006

Energy Sector Partnerships

The International Copper Association (ICA) and USAID partnered to develop the Sustainable Energy Use Alliance, which will provide $5 million towards energy efficiency and energy access programs globally, with ICA leveraging USAID funding at a 4:1 ratio. The development impacts of the Alliance will be substantial; energy efficiency helps developing economies fuel economic growth and improve competitiveness while providing basic infrastructure services at a lower cost and also maintaining the environment. Increasing access to energy can help poor households create small businesses and improve their quality of life. These goals are consistent with USAID's role in the President's Clean Energy Initiative and the Asia-Pacific Partnership for Clean Development and Climate, announced by the White House in July 2005. The Alliance's current three-year work plan would include providing safe and legal electrical connections in impoverished areas of Brazil (Sao Paolo) and India (Mumbai); promoting energy-efficient agricultural irrigation in India (Bangalore); and, facilitating public sector purchases of efficient electrical equipment in Mexico.

The India Rural Electrification Program is a $3.3 million partnership between the General Electric Company (GE) and USAID. It is designed to provide communities in India with access to clean energy through GE biomass (organic matter), wind, and solar power generation technologies. The alliance will provide modern energy services to select un-served or under-served communities and develop the capacity of these communities to manage the energy system in a sustainable manner, anticipating that such development would increase productivity and spur economic growth. The program has three main components: development and installation of renewable energy systems; community organization and development support (including assistance in accessing financing) so that the new energy systems can be utilized to meet a variety of cross-sector development objectives and managed sustainably; and, project monitoring and evaluation to guide the development of these pilots as effective models for commercially viable rural electrification across India. The initial pilot locations will utilize biomass waste as feedstock with a later pilot project possibly incorporating solar and wind technologies as well. The distributed generation systems will stimulate the development of rural economic hubs, with rural industries acting as anchor customers for both heat and power. The partnership will span a two-year period and provide up to four communities in India with access to clean energy. USAID will contribute $600,000 to this program. GE and its worldwide network of partners will invest up to $2.7 million in the pilot projects, including the development of new rural electrification technologies.

The Alliance for Mindanao Off-Grid Renewable Energy (AMORE) provides solar-powered compact fluorescent lights and street lamps in the Autonomous Region in Muslim Mindanao in the southern Philippines. The southern portion of the Philippines archipelago has experienced civil unrest and violence for three decades. Economic neglect and exploitation fueled a guerrilla movement in this predominantly Muslim area. In 1996, a peace agreement between the national government and the insurgents created the Autonomous Region in Muslim Mindanao, promising to bring social and economic development to the region. For such development to occur, however, electric lighting needs to be cheaper and more widely available. The islands of the southern Philippines are a great distance from the national energy grid and that handicaps income-generating activities and causes the local population to rely on carbon dioxide-emitting kerosene lamps.

AMORE's efforts are helping to increase outdoor safety and significantly increase business and educational productivity by allowing work and study to extend into evening hours. Community development groups maintain these renewable energy systems. The energy systems also enable aspiring entrepreneurs to pursue new small business projects such as mat-making and other local crafts. AMORE hopes to provide sustainable, renewable solar energy and microhydro systems in at least 405 remote rural communities, serving 15,545 homes. USAID's partners include the Autonomous Region in Muslim Mindanao, the Kingdom of the Netherlands, Mirant Philippines Corporation, Philippines Department of Energy Shell Solar, and Sunpower.

USAID also supports the Methane to Markets Partnership, an action-oriented initiative designed to reduce global methane emissions to enhance economic growth, promote energy security, improve the environment, and reduce greenhouse gases. The initiative focuses on cost-effective, near-term methane recovery and use as a clean energy source accomplished internationally through collaboration between developed countries, developing countries, and countries with economies in transition - together with strong participation from the private sector. On June 9, 2005, USAID, EPA and other USG agencies, in conjunction with the American Petroleum Institute, Solid Waste Association of North America, and National Mining Association, conducted a one-day workshop to engage private sector entities interested in developing methane emissions reduction and use projects internationally. The workshop has spurred future collaboration with the private sector to reduce methane emissions worldwide.

For more information, please see the Global Development Alliance website at http://www.usaid.gov/gda.