Increasing access to energy services in rural areas - REEEP ...

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SUSTAINABLE ENERGY REGULATION AND POLICYMAKING TRAINING MANUAL page 10.20 risks associated with a particular fuel/technology system. For example, in poor rural China it is not difficult to find households with a solar water collector, biogas digester, and both coal and residue burning stoves. Table 2. Typical end uses by energy source in developing countries 35 Income Level Low Medium High Household Cooking Wood, residues Wood, charcoal, residues, Wood, charcoal, and dung dung, kerosene, biogas kerosene, LPG, coal Lighting Candles, kerosene, none Candles, kerosene Kerosene, electricity Space heating Wood, residues, dung, Wood, residues, dung Wood, residues, dung, none coal Other appliances – None Grid electricity Grid electricity and radio/television and batteries batteries Space cooling None Electricity (fans) Electricity, kerosene, and refrigeration LPG Agriculture Tilling Human labour Draft animals Animal, gasoline, diesel Irrigation Human labour Draft animals Diesel, grid electricity Processing Human labour Draft animals Diesel, grid electricity Industry Milling/mechanical Human labour Human labour, Grid electricity, diesel, draft animals gasoline Process heat Wood, residues Coal, charcoal, wood Coal, charcoal, wood, and residues kerosene, residues Cooling/ None None Grid electricity Refrigeration LPG, kerosene Services Transport Human labour Draft animals Diesel, gasoline Telephone None Batteries Grid electricity 6.2. The problems of increasing the ability to pay for improved energy services in rural areas Large numbers of people in effect suffer from a “vicious circle” of energy poverty where they are “energy poor” because they do not have the means to buy improved energy services, even if they have access to them (in the sense of being in close proximity to a supply). Furthermore, even people who can afford improved energy supplies still may not be able to afford the “conversion technology” that makes that energy useful (for example, a stove, radio, light bulb or motor). This can be illustrated diagrammatically (see figure I below). 35 Based on World Bank, 1996, Rural Energy and Development, World Bank Publication, page 25.
MODULE 10: INCREASING ACCESS TO ENERGY SERVICES IN RURAL AREAS page 10.21 Increased access to cash becomes crucial because improved energy services at the household level frequently necessitate switching to an energy technology that costs money from one that does not. Even where improvement in lighting results in cash savings because the new source replaces more costly but less effective supplies (such as batteries and candles), there is frequently a net increase in money expenditures because people make more use of the improved energy services. This means that attempts to reduce energy poverty (particularly using electricity supply technologies) face a particularly difficult issue in terms of the stated preferences of intended beneficiaries. When rural people express their needs for improved energy services they often give high priority to lighting, a perfectly understandable position for those forced to live much of their lives in the semidarkness provided by candles or kerosene. But the most financially sustainable decentralized electricity supply options are likely to be those which provide power to productive enterprises that can sell their products/services profitably. 36 Figure I. The vicious circle of energy poverty 1. No energy to run machines results in low productivity, poor quality and range of output. The issue is deepened by “time poverty”, meaning women’s labour time cannot be released for economic activity. 3. No money to buy improved energy supplies or energy conversion equipment. vicious circle 2. Low productivity, low surplus, little cash. 36 Generally village wealth will not increase unless goods and services can be sold outside the village, this implies that roads and transport are likely to be necessary “complementary inputs”.
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