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Access to Energy for the Base of the - Ashoka

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3. STATEMENT OF THE PROBLEM<br />

<strong>Energy</strong> is intertwined with development needs. When<br />

people lack access <strong>to</strong> energy, <strong>the</strong>y lose an opportunity<br />

<strong>to</strong> study or generate income, and face health problems<br />

and constant danger. For low-income people, energy is<br />

more than just a light at night, or a way <strong>to</strong> cook a meal.<br />

<strong>Access</strong> <strong>to</strong> energy provides a direct benefit in terms <strong>of</strong><br />

poverty reduction and improved health. The UN<br />

Millennium Project estimates <strong>the</strong> impact <strong>of</strong> providing<br />

electricity <strong>to</strong> a rural Philippine household at $81 <strong>to</strong> $150<br />

per month due <strong>to</strong> "improved returns on education and<br />

wage income". 6 In Mali, 80% <strong>of</strong> households said <strong>the</strong>y<br />

hoped <strong>to</strong> start an income-generating activity when <strong>the</strong>y<br />

had a reliable power source.<br />

The World Health Organization estimates that 1.6m<br />

people every year die due <strong>to</strong> indoor air pollution from<br />

cooking indoors on firewood, dung, refuse, etc. 7 Women<br />

and girls in rural India spend an hour each day collecting<br />

firewood <strong>for</strong> cooking. Clean cooking alternatives<br />

improve respira<strong>to</strong>ry health, reduce drudgery and leave<br />

more time <strong>for</strong> o<strong>the</strong>r activities.<br />

These impacts are not isolated <strong>to</strong> poor communities.<br />

A recent study found that 18% <strong>of</strong> greenhouse gas<br />

emissions are caused by ‘black carbon’ - soot from<br />

fires. 8 When low-income people lack clean, safe energy,<br />

it increases everyone’s risk from climate change.<br />

Providing access <strong>to</strong> energy is at <strong>the</strong> heart <strong>of</strong> <strong>the</strong> development challenge<br />

<strong>Access</strong> <strong>to</strong> energy has a strong<br />

impact on development..<br />

�Growth and income poverty reduction:<br />

�E.g., benefit <strong>of</strong> providing electricity <strong>to</strong> a<br />

Philipine household: $81-150 per month<br />

�Education and gender:<br />

�Girls in rural india spend more than one<br />

hour per day collecting wood <strong>for</strong> cooking<br />

�Health:<br />

�1.6m deaths/year from <strong>to</strong>xic s<strong>to</strong>ve smoke<br />

Source: Hystra analysis; <strong>Energy</strong> Services <strong>for</strong> <strong>the</strong> Millenium Development Goals UNDP<br />

6 <strong>Energy</strong> Services <strong>for</strong> <strong>the</strong> Millennium Development Goals; UNDP<br />

...and minimum level <strong>of</strong> development is<br />

required <strong>to</strong> provide energy<br />

�On <strong>the</strong> demand side, cus<strong>to</strong>mers must:<br />

�Have regular ability <strong>to</strong> pay<br />

�Be ready <strong>to</strong> change some habits<br />

�On <strong>the</strong> supply side, conditions are required:<br />

�Rule <strong>of</strong> law, such as ability <strong>to</strong> en<strong>for</strong>ce<br />

contracts<br />

�Supporting infrastructure, such as banks,<br />

retail channels and roads<br />

Figure 2 Rein<strong>for</strong>cing link between access <strong>to</strong> energy and development<br />

7 World Health Organization; http://www.who.int/indoorair/health_impacts/burden_global/en/index.html<br />

8 Third-World S<strong>to</strong>ve Soot Is Target in Climate Fight; New York Times, April 16, 2009; http://www.nytimes.com/2009/04/16/science/earth/16degrees.html?hp<br />

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