Rural electrification in Zimbabwe reduces poverty by targeting income-generating activities

National electrification programmes are given priority in many developing countries and the level of electrification is generally seen as one of the key indicators of development. Utilities find rural electrification programmes a challenge because the returns on the investment made in grid extension are minimal given the usually low levels of power consumption in rural areas. An approach, adopted in Zimbabwe that promises to address this problem is to target income-generating activities, mainly the small and medium scale enterprises (SMMEs) in the areas where the electricity grid is extended. This will have the benefits of potentially increasing the return on the utility’s investment by also stimulating small-scale commercial and industrial activities in the areas reached by the grid. It is however important to understand the SMMEs and their needs in order to tailor any support appropriately. When extending the grid to the growth points the Rural Electrification Agency may also provide loans and deliver to site electrical machinery like grinding mills, irrigation equipment and welding machines that entrepreneurs may order. This paper discusses the findings of recent case studies among small enterprise beneficiaries of rural electrification in the arid southwest of Zimbabwe and highlights key lessons learnt

Leveraging carbon revenue for poverty alleviation

I'm not sure how to cite this. This study is part of Peter Atkins’ Master’s dissertation at the UCT Energy Research Centre.One of the intentions of the Kyoto Protocol and the Clean Development Mechanism (CDM) was to use markets to allow the developed countries to supplement their own greenhouse gas reduction efforts with carbon reductions made in developing countries by purchasing carbon offsets. By these means, it was hoped, global greenhouse gas emissions would be reduced and developing countries would benefit through incoming carbon revenue and technology transfer. This has worked for China and India, which together account for 88% of all CDM carbon credits issued so far, but it hasn’t worked for Africa which has only a miserly 1% of the issued credits. The main reasons for this disparity are thought to be the high transaction costs of the CDM and the long and complicated registration, validation, monitoring and verification processes. The costs are around R400 000 to R2 000 000 per project (CCWG, 2009) . In addition it can take up to three years to get carbon revenue, if the project is one of the lucky 13% of projects to make it through to the end (see Appendix A – CDM Pipeline analysis). Partly in response to these CDM shortcomings, the voluntary carbon market has emerged. The voluntary carbon market has many players using many different standards and rules and regulations. Unfortunately, the CDM-like standards used by the bigger voluntary carbon market registries also incur high transaction costs and long lead times and therefore don’t work for typical, small African poverty alleviation projects with low greenhouse gas emission reduction potential. This has encouraged the development of small, agile carbon registries using simplified standards, which better fit the African projects. One such small registry and one of its poverty alleviation projects are analysed in this paper

Impact of energy reforms on the poor in Southern Africa

Most poor households in sub-Saharan Africa cannot afford an electricity connection and even if they get a connection they can only afford to use electricity predominantly for lighting, television and radio. They cannot afford to use it for their most energy-intensive use: cooking. Some countries in Southern Africa have approved policies to assist the poor to get access to electricity. South Africa, Botswana and Malawi have successfully implemented energy reforms and strategies aimed at this, though with different approaches in the three countries. South Africa has a strong economic base and the capacity to provide efficient energy services and highly subsidised electricity access. Botswana’s rural electrification programme is based on cost recovery for the utility: as a result of extending the loan period for the connection fee and adapting the monthly repayment amount to the ability of poor households to pay, electricity connections increased significantly. In Malawi a fixed-rate tariff and a limited-current supply was introduced. The repayment for the ready board was amortised over five years and added to the fixed monthly payment, the amount being adjusted to the ability of the households to pay. In Access II populations were divided into poor and non-poor. These broad categories limited a more differentiated analysis of the impact of power sector reform. In countries which have a high proportion of poor people – in some cases up to 80% of the population – we need to divide them into groups of very poor and not so poor. In this study the poor are ranked by income, and the division into different income groups permitted a more differentiated analysis than just looking at ‘poor’ and ‘non-poor’. The very poor who need further support can be targeted for further assistance. The analysis of the South African data also revealed that the higher urban income groups among the poor can afford to use electricity for most of their energy requirements and need no additional policy support. The analysis also showed how the poor change their energy portfolios as their income improves. The persistent use of fuelwood for cooking among all income groups of poor rural households has remained a matter of concern, particularly as the burning of fuelwood leads to indoor air pollution and affects the health of women and children. The sustainability of fuelwood supplies are also not guaranteed as population increases and fuelwood becomes more commercialised putting pressure on rural areas supplying cities. Even after electrification, households continue to use fuelwood for cooking. The income-differentiated analysis shows that as incomes rise, fewer households use fuelwood and substitute it by kerosene, electricity and gas

Renewable energy technologies for poverty alleviation: South Africa - biodiesel and solar water heaters

South Africa, like other transitional countries, faces the dual challenge of pursuing economic growth and environmental protection. Sustainable energy systems, based on renewable energy (RE) resources, offer the possibility of doing both. The implementation of RE technologies faces a major challenge because South Africa has large coal deposits and its electricity generated from coal is among the cheapest in the world. Currently less than 1% of the 200 000 GWh of electricity generated in the country originates from renewable sources (DME, 2003a). The Government’s White Paper on Renewable Energy Policy (2003) supports the establishment of RE technologies, targeting the provision of 10 000 GWh of electricity from renewable resources by 2013. This has the potential to create 35 000 jobs, adding R5 billion to the GDP and R687 million to the incomes of low-income households (DME, 2004). Solar water heating and biodiesel have the greatest potential to contribute to meeting the target. RE is to be utilised for both power generation and non-electric technologies such as solar water heating and biofuels. By late 2005 the DME completed a Renewable Energy Target Monitoring Framework to ensure that progress towards the 2013 target is effectively monitored (DME, 2005a). In this report, two RE technologies – solar water heaters (SWHs) and biodiesel – have been identified where renewable energy could make a significant contribution towards poverty alleviation in terms of improving the general welfare of households as well as developing productive activities to generate employment. The country has high levels of solar radiation and an established manufacturing infrastructure for SWHs. They can contribute to a reduction in greenhouse gas (GHG) emissions, and their manufacture and installation can contribute to job creation and skills development. However, the high upfront capital cost of SWHs is one of the key barriers to the development of a market in South Africa. Biodiesel has the potential to contribute to job creation, economic development in disadvantaged rural communities, energy security in the light of rising oil prices, and reducing greenhouse gas emissions. Some of the key challenges to the development of a biodiesel market are food security and limited water resources

Renewable energy technologies for poverty alleviation - Initial assessment report: South Africa

South African energy policy priorities have always been closely linked to the prevailing political situation. Pre-democratic energy policy and planning were characterized by energy security priorities, excessive secrecy and racially skewed provision of energy services. Post-apartheid South Africa witnessed substantial revision and a strong focus on energy for development. In accordance with the Constitution (Act No. 108 of 1996) an inclusive Energy White Paper (1998) was developed. Major objectives of government’s Energy White Paper are (DME, 1998): • Increasing access to affordable energy services; • Stimulating economic development – encouragement of competition within energy markets; • Managing energy-related environmental and health effects; • Securing supply through diversity – increased opportunities for energy trade and diversity in both supply sources and primary energy carriers. Renewable energy becomes one of the areas that the government would want to consider pursuing in managing energy-related environmental impacts and diversifying energy supplies from a coaldominated system. In May 2004, the Department of Minerals and Energy (DME) published the White Paper on Renewable Energy Policy. This targets the provision of 10 000 GWh (accumulative over a period of 10 years) of electricity from RE resources (mainly biomass, wind, solar and small-scale hydro projects) by 2013. This is approximately 4 % of the country’s estimated electricity demand or equivalent to replacing two 660 MW units of Eskom’s combined coal-fired power stations. At present less than 1% of the 200 000 GWh of electricity generated annually in South Africa originates from RE sources (DME, 2004)

Factors influencing the societal acceptance of new, renewable and energy efficiency technologies: meta-analysis of recent European projects

The paper addresses the conditions for the successful introduction of sustainable energy technology projects in different geographic, institutional and cultural contexts. Our aim is to identify contextual and process-related factors influencing the level of societal acceptance and techno-economic successfulness achieved in energy projects that aim to mitigate climate change (renewable energy, energy efficiency and advanced technologies). Our focus is on successfulness on the level of individual projects, but we also consider how ‘lessons learned’ in individual projects diffuse into the wider context of energy planning. In our conclusions, we identify key challenges for project managers and policy makers

Energy policies for sustainable development in South Africa: options for the future

The purpose of this publication is to present a profile of energy in South Africa, assess trends and analyse some options for the future. It is divided into two parts – Part I presents a profile of energy and sustainable development in South Africa, while Part II uses modelling tools and indicators to assess future policy options for the country

Energy, water and climate change in Southern Africa : what are the issues that need further investment and research?

National development plans focus upon energy and water separately, often not integrating the other sector’s resource use. This contributes to programme failures in the long run. Research is needed to inform and assist government in making the right decisions around renewable energies. A renewable energy project in Mozambique for instance, failed due to lack of spare parts which could not be manufactured locally; market demand was low, making the cost of production too high; the technologies had to be imported, rendering them unaffordable. This project looks at Integrated planning as a necessity in the context of Botswana, South Africa, Lesotho and Mozambique

Exploring the options for fuelwood policies to support poverty alleviation policies: Evolving dimensions in South Africa

Access to secure and affordable energy supplies is widely acknowledged as a critical foundation for sustainable development; inadequate access exacerbates household poverty. In the developing world poor households are frequently reliant upon fuel wood for all or most of their energy needs. However, national poverty alleviation policies commonly do not consider fuelwood within their strategies, and similarly, energy policies rarely consider the poverty alleviation potential of a comprehensive fuelwood strategy. Consequently, synergies between poverty alleviation and energy policies—with fuelwood (and its derivates) as the bridge—are needed. This paper discusses this potential using South Africa as a case example. The current policy environment that either favours or hinders a linkage between the poverty and energy sectors and policy options and strategies available to develop such links, are discussed