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hydropower, wind and solar farms to generate power for the grid, cf. Recommendation No. 269 2008–2009 to the Storting.
3.2 Development assistance to clean energy must also reach the poorest consumers
Access to clean energy at a reasonable price is an important input factor in the ight against poverty.
12
It is therefore an important goal to develop infrastructure to transmit energy to consumers – even in the poorest regions. The Standing Committee on
Foreign Afairs has pointed out on multiple occasions that it is important to consider projects other than hydropower projects to ensure that the poorest consumers beneit
from energy programmes. In its discussion of Report No. 13 2008–2009 to the Storting Climate, Conlict and Capital, the majority of the Committee referred to the
fact that Norwegian aid, in addition to its focus on hydropower where the precondi- tions are favourable, must increasingly focus on solar energy and wind farms in
partner countries in Sub-Saharan Africa. This applies especially where the climate and sparse population make it diicult for the poor in rural areas to access other sources
of renewable energy. This is reiterated in the Committee’s discussion of Report No. 15 2008–2009 to the Storting Interests, Responsibilities and Opportunities, in which
the majority of the Committee stated that Norway should promote development of new renewable energy, for example wind and solar energy. Increased focus on
renewable and new renewable energy may help create more energy security, including in poor developing countries. During its discussion of the white paper Towards
greener development Meld. St. 14 2010–2011, the Committee believed that small and medium-sized projects within renewable energy should also be prioritised, since
they contribute strongly toward reduced poverty, cf. Recommendation 44 S 2011–2012. Furthermore, the majority of the Standing Committee on Foreign
Afairs pointed out that energy is not only necessary for industry and commercial trading, but also for providing the general population with access to the internet and
communication services.
3.3 A sustainable energy sector demands high levels of competence and strong institutions
In its annual budget resolutions, the Ministry of Foreign Afairs has pointed out that in Norway’s aid cooperation with African countries, particular attention has been
devoted to capacity development and transfer of expertise in areas where Norway has relevant expertise.
13
Proposition No. 1 2004–2005 to the Storting recognised that contributions toward capacity building and institutional development in developing
countries will be an important aspect of the long-term development cooperation, regardless of channels and budget items. Norway has particular expertise within areas
such as legislation, energy sector organisation, licensing systems, systems for plan- ning that safeguard inancial and environmental considerations, as well as partner-
ships with neighbouring countries.
14
In Recommendation No. 269 2008–2009 to the Storting, the Standing Committee on Foreign Afairs pointed out that it is important to ensure that aid for capacity develop-
ment is designed to support the recipient’s ownership of their own development.
12 Report No. 35 2004–2005 to the Storting Fighting Poverty Together, p. 122. 13 Proposition No. 1 2006–2007 to the Storting – Ministry of Foreign Affairs, p. 83, Proposition No. 1 2007–2008 to the
Storting – Ministry of Foreign Affairs, p. 96, Proposition No. 1 2008–2009 to the Storting – Ministry of Foreign Affairs, p. 116, Prop. 1 S 2009–2010 Proposition to the Storting draft resolution – Ministry of Foreign Affairs, p. 118, Prop. 1 S 2010–2011
Proposition to the Storting draft resolution – Ministry of Foreign Affairs, pp. 46 and 137 and Prop. 1 S 2011–2012 Proposition to the Storting draft resolution – Ministry of Foreign Affairs, p. 116.
14 Proposition No. 1 2006–2007 to the Storting – Ministry of Foreign Affairs, p. 29.
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The poorest developing countries face major challenges in developing new expertise, institutions and regulations. By developing capacity in the partner countries’ energy
and planning authorities, Norway helps facilitate the design of sound national devel- opment strategies.
15
3.4 Public involvement is necessary in order to trigger private investments in the energy sector
Industrial development is an important part of development policy and the eradication of poverty. The Standing Committee on Foreign Afairs emphasised this fact in
Recommendation No. 93 2004–2005 to the Storting. One focus area is leveraging investments to establish small and medium-sized businesses. Norfund is an important
policy instrument in this connection. According to Report No. 13 2008–2009 to the Storting Climate, Conlict and
Capital, the terms for energy investments have improved signiicantly in many poor countries in recent years, and many developing countries can provide a politically
stable framework for investors. Nevertheless, energy projects are complex, and the risk is greater in developing countries than in wealthier countries. Signiicant public
involvement is therefore required to stimulate private investments.
In Recommendation 44 S 2011–2012 to the white paper Meld. St. 14 2010–2011, the Standing Committee on Foreign Afairs noted that Norway can contribute toward
inancing technology transfer within the areas of renewable energy generation and eicient energy consumption, with a view towards triggering large-scale private
investments. According to Proposition 1 S 2010–2011, the Government wanted to increase its eforts to trigger investments in renewable energy by using development
aid funds strategically, give Norfund latitude to further develop its investments in businesses in developing countries and generally stimulate the use of Norwegian
expertise to make pro-development investments in poor countries. The use of Norfund as a policy instrument to promote private investments in the energy sector in the least
developed countries has been emphasised by the Government since the early 2000s.
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3.5 Development assistance must be based on the partner countries’ own priorities
Norway acceded to the Paris Declaration on Aid Efectiveness in 2005. The subse- quent Accra Agenda for Action in 2008 emphasises the importance of aid being based
on national development plans that relect the partner country’s desires and needs.
As all other development cooperation, the focus on clean energy is subject to interna- tional development policy obligations. The partner country must own its own develop-
ment agenda, and the aid must be based on a division of labour and coordination between donors.
17
Norway’s bilateral contributions must be based on demand and founded on the countries’ own plans and priorities.
18
The demand is often geared toward hydropower, which is the sector where Norwegian industry has the most to ofer, the most
15 Prop. 1 S 2010–2011 Proposition to the Storting draft resolution – Ministry of Foreign Affairs, p. 37. 16 See e.g. Proposition No. 1 2001–2002 to the Storting – Ministry of Foreign Affairs, p. 65.
17 www.regjeringen.nonbdepuddokrapporter_planerPlaner2007ren_energi_utviklingsarbeidet.html?id=489316. Norwegian only
18 Report No. 13 2008–2009 to the Storting, p. 51.
