Recommendation 5

HM Government Deferred

25. We recognise that technology-driven energy projects can face challenges around local ownership and maintenance. To address this, our approach prioritises meaningful community engagement, capacity-building, and co-design with local stakeholders. This ensures that solutions are not only deployed effectively but remain sustainable and locally managed over the long term. Looking ahead, we see emerging technologies such as AI as having the capacity to streamline processes and improve efficiency. As we adapt to these capabilities, we will ensure that community-based approaches remain central to project design and delivery, balancing innovation with legitimacy, resilience, and lasting impact. (Recommendation 5, paragraph 46) 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. Government Response: Partially Agree 26. The FCDO’s Programme Operating Framework (PrOF)2 sets out requirements for projects delivering UK ODA to ensure strong protections and safeguards across all funded activities. These requirements include comprehensive measures to prevent and address fraud, corruption, sexual exploitation, abuse, harassment, and other forms of misconduct. They also establish standards for financial management, ethical behaviour, and the protection of vulnerable groups, with the overarching aim of maintaining the highest levels of integrity, accountability, and safety throughout the delivery chain. These requirements apply to all projects and downstream agreements; not only to energy access-related projects. We recognise that it can be very difficult for some local, and especially small and early-stage, implementers to meet these requirements and that this can be a barrier to inclusion of local partners. Recognising the importance of an increasing shift to local leadership in the coming period, it may be that these requirements will be reviewed, there will rightly continue to be a strong degree of priority on managing fiduciary risks, safeguarding etc, and due diligence and reporting expectations are unlikely to significantly reduce. 27. In this context, the most pragmatic response may be to leverage our downstream delivery chain. This means continuing to use larger and more experienced entities to channel our funds, but with strong and explicit guidance and mechanisms to enable funds to be passed on to local partners for project delivery on the ground. With large programmes such as TEA involving more than 750 downstream energy access innovators, it is essential that our Tier 1 and 2 partners play an important role in managing requirements and risks and enabling local participation and leadership. Many Tier 1 and 2 partners have fully locally staffed local offices, even if they also have northern headquarters. In many cases, it is the companies themselves—such as the mini-grid developers, or the household solar providers—who need to be leading the engagement with communities and customer groups directly. (Recommendation 6, paragraph 47) 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. 2 FCDO Programme Operating Framework - GOV.UK Government Response: Agree 28. A review and report have been concluded looking across the 34 programmes which constitute the Ayrton Fund for clean energy innovation (RD&D support) between 2021–2026, and drawing together the successes, failures and lessons of the approaches taken to localisation. A webinar3 was held on 27 November to share these findings with participating departments (FCDO, Department of Energy Security and Net Zero (DESNZ) and Department for Science, Innovation and Technology (DSIT)), Ayrton delivery partners, and other interested stakeholders. The webinar featured a range of HMG and southern voices from Africa, Latin America and Asia, and highlighted good practices as well as continued need for effort and focus on this. The report was published in November 2025 and has been shared via Ayrton Fund and other LinkedIn Channels. The report provides recommendations in 4 key areas, which programmes can adopt in the innovation area, but also TA and investment programming. Vulnerable communities Conclusion and Recommendation 7 (Conclusion 7, paragraph 52) Inclusion is central to the effectiveness, sustainability, and legitimacy of community energy initiatives. Projects designed and governed with the active participat