Ivan

Access to energy :Experiences, Challenges and DilemmasDanida Development Days,2007Energy for Development in Africa: 

Access to energy : Experiences, Challenges and Dilemmas Danida Development Days, 2007 Energy for Development in Africa Ivan Nygaard, Researcher, PhD UNEP Risø Centre www.uneprisoe.org

Outline of presentation: 

Outline of presentation Access to modern energy Persistent dilemmas in energy intervention Energy, development and the MDGs Recommendations

Services rather than technologies : 

Services rather than technologies World Energy Outlook, 2002

Slide4: 

Current levels of access to electricity Source: The World Bank (2006) Dataset

Persistent intervention dilemmas: 

Persistent intervention dilemmas Large scale infrastructure – decentralised supply Renewable energy – fossil fuels Subsidy – full costs recovery Rural – urban focus Public – private ownership Support to infrastucture (energy) or direct poverty oriented support to water, health and education

Large scale infrastructure or decentralised supply: 

Large scale infrastructure or decentralised supply Close relationship between cost of electricity (hydropower) and rural electrification rates Cheap electricity from hydro, gas and regional interconnections is an important precondition for achieving high access rates Decentralised solutions outside grid connected areas to build up demand

Renewable or fossil – a question of price: 

Renewable or fossil – a question of price

Renewable energy or fossil fuels- depending on context: 

Renewable energy or fossil fuels - depending on context Important to opt for the cheapest solutions to the rural poor and to use renewables where adequate Solar PV should only be used where economic feasible Important to compare the quality of service from PV, gridconnection Small scale hydropower for electricity Biomass waste for electricity Large hydropower an option in some places in Africa with low population density Biofuels – from jatropha, bagasse, waste products ??

Subsidy or full cost recovery: 

Subsidy or full cost recovery Rather level of subsidy dependent on: Country income level South Africa – Burkina Faso Use of energy community/health/ education/water productive use household electricity consumptive use

Rural or urban focus ?: 

Rural or urban focus ? Rural poor Important for basic infrastructure needs Creating local employment Reducing rural-urban migration Maintaining teachers in the rural areas Difficulties High level of subsidy needed Often non grid solutions Urban poor More value for money Grid extension possible High density of consumption Safety issues important Create local employment Difficulties Electricity for schools and health centres in nearby areas. Integrated with problems of legal settlement rights

Public or private ownership: 

Public or private ownership Power sector reform has not increased private investment in infrastructure as anticipated. Rather uncertainty has led to drop in investment. (drought, power cuts, emergency capacity) Creation of stable and reliable institutional and regulatory frameworks (regulators, stock markets) are one of the means to increase investments Introduction of Kengen on the Kenyan Stock market Power sector reforms were not designed to increasing rural electrification. History shows that the most successful electrification programmes were implemented in countries with state owned utilities Morocco, Thailand, Egypt Stable and committed effort from governments and utilities are important factors Morocco, Thailand

Energy and economic development: 

Energy and economic development A necessary, but not sufficient condition ? Since energy underlies all economic activity, human development may be severely impeded by a lack of energy infrastructure. (World Energy Outlook, 2004, p. 341) There is almost unanimous agreement that energy plays a pivotal role in national development. Generally, there is a high degree of correlation between energy use, economic growth, and level of development (Cabraal et al, 2005) World Bank

Energy and the MDG’spoverty reduction: 

Energy and the MDG’s poverty reduction Access to affordable energy services from gaseous and liquid fuels and electricity enables enterprise development. Lighting permits income generation beyond daylight hours. Machinery increases productivity. Local energy supplies can often be provided by small scale, locally owned businesses creating employment in local energy service provision and maintenance, fuel crops, etc. Privatisation of energy services can help free up government funds for social welfare investment. Clean, efficient fuels reduce the large share of household income spent on cooking, lighting, and keeping warm (equity issue - poor people pay proportionately more for basic services). The majority (95 percent) of staple foods need cooking before they can be eaten and need water for cooking. Post-harvest losses are reduced through better preservation (for example, drying and smoking) and chilling/freezing Energy for irrigation helps increase food production and access to nutrition DFID, 2002. Energy for the poor: Underpinning the Millennium Goals Modi et al, 2005. Energy Services for the Millennium Development Goals. WB and UNDP

Energy and the MDGs : 

Energy and the MDGs Poverty and hunger (1) Primary education (2) Improve maternal health (5) Child mortality (4) Environmental sustainability (7) Jobs, agricultural activities, micro enterprises, etc. Reduce girls workload from collecting water, wood fuel, light at night Light at health centres, reduced smoke Reduce air pollution, boiled water Reduce air pollution and land degradation This has lead some to use a wide definition of productive use, including use for reproduction: education and health.

A multisectoral approach to supporting energy access: 

A multisectoral approach to supporting energy access Consideration of energy issues in all development assistance Agriculture Health Education Include energy in general poverty alleviation interventions, and in PRSPs Budget support or programme support instead of project support

Need of increased investments: 

Need of increased investments Huge need of investment to both national and regional projects: Large scale electricity production (hydropower, natural gas) Transmission of electricity and natural gas Investment in grid and non grid connected rural electrification This will be a challenge for a cooperation between: Development agencies Development banks Private investors.