Source · Select Committees · International Development Committee
Recommendation 29
29
Accepted in Part
Commit to multi-year funding for energy projects, supporting their full life cycle
Recommendation
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)
Government Response Summary
The government partially agrees, stating it aims to prioritise multi-year planning and greater programming predictability, subject to future budget allocations, to ensure stable delivery and long-term impact, including supporting projects through their full life cycle. However, they acknowledge that projects cannot always be supported through their full life cycle.
Government Response
Accepted in Part
HM Government
Accepted in Part
Government Response: Partially Agree 67. In our ODA allocations and interventions, the UK prioritises predictability and stability in departmental budgets. Current arrangements provide clear annual allocations and include break clauses in contracts to manage risk while protecting live agreements. These measures aim to balance fiscal constraints with programming certainty, enabling teams to plan effectively and sustain partnerships, while retaining flexibility to adapt to changing priorities. 68. We recognise that projects cannot always be supported through their full life cycle for a range of reasons. Recent ICAI reviews highlight that past volatility in ODA budgets disrupted delivery, weakened partnerships, and risked losing technical expertise built over years. ICAI’s 2025 energy transition review found UK aid had strong impact but its portfolio was broad and diverse and risked a lack of coherence. It also identified the need for patient investment to support developing countries to adopt or transition to clean energy, and the tension against the shorter timeframes within which private investors tended to operate (the required finance exceeds public funds alone). 69. Moving forward, we aim to prioritise multi-year planning and greater programming predictability, subject to future years’ budget allocations, to allow for stable delivery, sustained partnerships, and long-term impact. This includes supporting projects through their full life cycle, reducing fragmentation, and embedding resilience into programme design. By doing so, we will safeguard the quality and effectiveness of UK-funded energy access initiatives and maintain the expertise built through years of engagement.