Aid for community-led energy

Despite notable global progress in expanding energy access, Sustainable Development Goal 7 on affordable and clean energy will not be met without renewed international commitment and targeted interventions. The UK is well placed to convene and coordinate with other donors, multilateral institutions, and private sector partners to drive progress at scale. (Conclusion, Paragraph 12)

We welcome the leadership shown by past governments in elevating underexplored aspects of global energy access, such as clean cooking and low-energy appliances, on the global agenda. This support has delivered tangible impact. As ODA resources tighten, the UK’s impact will depend on sustaining effective energy access programmes and using public finance strategically to unlock private investment. (Conclusion, Paragraph 23)

The FCDO should ensure that resources directed towards championing sustainable energy access are protected amid competing budgetary demands. A steady commitment to blended finance, working with the private sector and locally responsive initiatives, should seek to help overcome financing barriers and ensure progress reaches those furthest behind. (Recommendation, Paragraph 24)

Energy access is a foundational enabler of sustainable development. This should be acknowledged by embedding energy access more centrally in strategic planning and resource allocation. Evidence received by the Committee indicates that this is not currently happening, representing a missed opportunity to maximise the impact of limited funds. (Conclusion, Paragraph 27)

The FCDO must embed energy access across development, climate and humanitarian policies. A departmental working group should be set up by the end of 2026 to coordinate delivery. The FCDO should also create 32 targeted funding and measurable incentives for programmes that integrate energy access with other sectors, including health, water, and food systems. (Recommendation, Paragraph 28) Local Ownership and Inclusive Governance

The emphasis put by the FCDO and British International Investment (BII) on community-led energy is often implicit. The key concern is not the absence of the label, but whether localised energy systems are truly considered as a viable option and whether communities are genuinely placed at the centre of planning and implementation. (Conclusion, Paragraph 34)

The Government should be more transparent about how it enables local empowerment in energy projects and devise a better system of tracking projects that are community-led. It should allocate dedicated resources to support community-led energy initiatives as key vehicles for inclusive, locally driven development. BII, as a recipient of public funds, should similarly expand its investments to advance these efforts, including through technical support. (Recommendation, Paragraph 35)

Energy access projects and programmes are more likely to succeed when they are genuinely co-designed with local stakeholders, inclusive of marginalised groups, and supported by long-term capacity-strengthening. (Conclusion, Paragraph 43)

Energy projects are often technology-driven, which heightens the risks associated with limited local ownership and maintenance capacity. Emphasis should not be placed on rapid deployment or narrow output targets, but rather on meaningful community involvement. When engagement is top-down or superficial, legitimacy, sustainability, and long- term impact are compromised. (Conclusion, Paragraph 44)

The Government should make inclusive community participation across all stages of design, governance, and implementation a condition of UK funding for energy access. This should involve recognising and resourcing communities, particularly marginalised groups, as decision-makers. (Recommendation, Paragraph 45)

We recognise that there is sometimes a gap between the accountability expectations of donors and the capacity of local implementers. We recommend that in the next six months the FCDO reviews its accountability frameworks ensuring they are fit for purpose and makes sure resources are available to support local implementers to meet the appropriate and realistic requirements and develop their ability to handle international funding. (Recommendation, Paragraph 46) 33

The FCDO should systematically document and analyse successes and failures of community-led energy projects, including technical, social, and financial aspects, through annual learning reviews and case studies. Findings should be shared internally and with external partners to inform the design, governance, and scaling of future programmes. (Recommendation, Paragraph 47)

Inclusion is central to the effectiveness, sustainability, and legitimacy of community energy initiatives. Projects designed and governed with the active participation of women, people with disabilities, and other under- represented groups are more likely to deliver meaningful, lasting benefits and to reflect the priorities of the communities they serve. The Government’s publication of International Climate Finance gender equality, disability and social inclusion (GEDSI) guidance in May 2025 is a welcome initial step towards these goals. (Conclusion, Paragraph 52)

The FCDO should ensure women are central to community energy projects by supporting their leadership, and designing interventions around their needs, so they act as agents of change rather than just beneficiaries. It should report on the extent to which the recommendations of the GEDSI guidance note are implemented by June 2026. (Recommendation, Paragraph 53)

The FCDO should require community energy projects to actively involve people with disabilities in project design and governance, provide accessible technical and capacity-building support, and report on disability-disaggregated outcomes. (Recommendation, Paragraph 54)

Conventional value-for-money frameworks overlook long-term social benefits, which undervalues inclusive, community-led approaches. The Government’s efforts to advance inclusivity are further constrained by the limited availability of disaggregated data on how energy systems affect women, people with disabilities, or other marginalised groups. (Conclusion, Paragraph 57)

The FCDO should adopt a multi-dimensional evaluation framework for community-led energy projects, that accounts for long-term equity, accessibility, and system legitimacy, by June 2026. To do so, it should support the collection of broader impact metrics through appropriate incentives. This should be the case irrespective of who is delivering the project funded by UK ODA, including development finance institutions. (Recommendation, Paragraph 58) 34 Clean Energy for Climate

The Government should not hide behind the complexities of the global clean energy transition. Aid must advance poverty alleviation while also contributing to climate mitigation and adaptation. While these objectives can sometimes pull in different directions, trade-offs should be openly acknowledged, publicly debated, and addressed through deliberate and transparent policy choices. This is not happening at present. (Conclusion, Paragraph 65)

In its response to this report, the Government should provide a clear definition of “clean energy” for ODA purposes, explicitly stating the energy sources supported, and their climate and other environmental impacts. This should also be published on the FCDO’s website. (Recommendation, Paragraph 66)

The Government should require all energy access projects to include a clear assessment of trade-offs in funding bids, alongside a plan for monitoring impacts and communicating risks to stakeholders. (Recommendation, Paragraph 67)

The Government has not always fully recognised the synergies between energy access and climate adaptation, leading to siloed programming, despite the central role of resilient energy systems in supporting adaptation efforts. (Conclusion, Paragraph 69)

The Government must explore the synergies between global energy access and climate adaptation more fully. This could be done by facilitating collaborative research networks internationally to strengthen the knowledge base. Relevant Government programmes should also collaborate to identify options for deeper integration and progress should be tracked through a joint monitoring framework. (Recommendation, Paragraph 70) Research and Innovation for Scale

The Government’s aid strategy rightly emphasises research and innovation, leveraging FCDO’s distinctive ability to connect global expertise with local knowledge and fostering strong partnerships with the UK research community. However, overreliance on innovation carries risks that need to be acknowledged and mitigated. (Conclusion, Paragraph 75)

The Government should maintain its commitment to research and innovation while increasing investment in the operationalisation of existing, effective energy solutions. Funding mechanisms must bridge the gap between early- 35 stage R&D and market-ready technologies, providing opportunities for commercialisation and ensuring sustained support for community-based systems. (Recommendation, Paragraph 76)

The Government should, where appropriate, work with ODA-recipient governments to develop policy, regulatory frameworks and viable, scalable models that enable community energy projects, drawing on UK expertise. (Recommendation, Paragraph 78)

Sustained progress in community energy depends on fostering local innovation and building robust capacity at multiple levels, from grassroots technical skills to manufacturing ecosystems. (Conclusion, Paragraph 81)

The Government should use its convening power to foster grassroots innovation by creating platforms for young people and local communities to co-design energy solutions. This could involve facilitating partnerships, research exchanges, and mentorship programmes between UK institutions and counterparts in lower-income countries. (Recommendation, Paragraph 82) Enabling Conditions for Success

Without predictable support, both the quality and effectiveness of UK- funded energy access initiatives, as well as the expertise built up through years of engagement, are at risk. We recognise the importance of the new arrangements for ODA allocations in improving predictability at the departmental level. However, we would like to see this directly translated into greater programming predictability, to allow for stable planning, sustained partnerships, and long-term impact. Projects should be supported over their full life cycle to ensure the long-term success of UK support. (Conclusion, Paragraph 86)

The Government should commit to multi-year funding structures that support projects across their full life cycle. This should include not only initial deployment but also ongoing maintenance, technical assistance, and governance support. The aim is to ensure that local communities can benefit from energy systems over the long term and are able to become self- sustaining as soon as possible. (Recommendation, Paragraph 87)

The Government should ensure that funding through multilaterals offers opportunities to scale community energy projects. It should take a global leadership role to guarantee that communities benefit from energy access projects in ways that empower them. This could include facilitating the development of best practice guidelines, encouraging knowledge sharing on successful models and supporting co-designed pilot initiatives that demonstrate replicable approaches. (Recommendation, Paragraph 91) 36

The Government should embrace the financial and strategic value of its development work, both in generating viable market opportunities and in providing insights that can strengthen domestic energy policy and practice. (Conclusion, Paragraph 95)

The Government should formalise a mechanism for systematic two-way learning between domestic and international energy initiatives and formally identify ways UK businesses could grow their international footprint through community energy investments. It should be in place by June 2026 (Recommendation, Paragraph 96) 37