environmentek lessons from the south monga mehlwana – energy specialist energy centres
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Environmentek
Lessons from the South
Monga Mehlwana – Energy Specialist
ENERGY CENTRES
Environmentek
Social contrasts in satisfying energy needs
Environmentek
RSA Energy Overview: Energy Flows (After Surridge, DME, 2003)
SUPPLY TRANSFORM TRANSPORT END USE
Oil
Natural Gas
Coal
Gas
ElectricityEskom
and Others
Coal
PetroSA
Export
Sasol
Road/Rail
Pipeline
OilRefineries
RailRoad
Pipeline
LiquidFuels
Biomass WoodPerson/Road
HydroNuclear
Transmission Wires
“Washery”
Koeberg
Environmentek
A fundamental challenge is to redefine
the paradigm for sustainable
development in energy context
A Fundamental Challenge
Environmentek
SOCIOECONOMIC CONTEXT OF SA POOR
• A population of more than 43 million• More than 50% is urbanised and 45%
in rural areas• More than 50% unemployed (officially!)• 34% of work seekers cannot find jobs• Disparities in land ownership,
education, etc• 62% earn less than $250 per month• 58% earn less than $83 per month• Unregulated growth of the informal
economy
Environmentek
Progress in Rural Energisation
• More than 70% households have electricity
• Only 49% of rural homes are connected to the grid
• A growing backlog of houses without electricity
ELECTRIFICATION IN RSA
1997 Houses (Million) 2001
Electrified Not Electrified Electrified Not Electrified
1.41 2.29 Rural 2.10 2.17
4.10 1.42 Urban 5.02 1.48
5.51 3.71 Total 7.12 3.65
59.70% 66.10%
Increase in total number of houses: 16.80%
Environmentek
Early Renewables Initiatives
• 1.8 million houses will not have access the grid by 2012
• A number of off-grid pilots project since 1990s focusing on PVs
• Schools and clinics (by EU and Eskom)• Water pumping• Household use (lighting and TV)
• Success limited, as they were not supported by a well defined policies
• Inadequacy of solar PVs to meeting most household needs
Environmentek
Public-Private Partnerships
• A delivery mechanism to address energy in an integrated manner
• Fee for service approach• Concessions to private consortia
consisting of international and local companies
• Mandate: to energise rural communities• Heavily subsidised by the government
• More than 75% of the systems costs• Households do not own the systems but
rent use from the utility
Environmentek
Rural Energy Service Utility Model
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Energy Store
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More and more households have access to electric power and basic LPG
•Payment of R55 ($8) fixed rent to the utility •Later experienced problems of nonpayment and households not affordable the fixed rate
Does it work?
Then
IMPLICATIONS:To make to work – government further announced intention of subsidising use of energyLocal govt to fund this from fiscus. Difficulty in implementing the subsidy caused by miscommunication between national govt, local govt and concessionaires
Environmentek
Non energy initiatives
• Integrated Sustainable Rural Development Strategy
• Emphasis on institutions to deliver change• Empowering of local Govt structures to coordinate
multiple programmes and link them• Coordination of funding to high impacts programmes
• Integrated Development Planning• Integration of planning in the different sphere of
government• linkages of social, physical, institutional components
of planning with management & implementation structure
Environmentek
Lessons from Energisation
• rural participation in planning & implementation of initiatives
• Transformation of energy needs into effective & articulated demand
The number of people connected to the national grid or have access to solar PVs does not mean development
Delivery mechanisms which acknowledge specificity of rural context
Environmentek
Integrated Energy Centre Model
• At the heart of the ISRDS and IDPs• Integrating the provision of wider energy choices
• Water supply• Building of schools and clinics, etc
Community ownership of the process through cooperatives
Environmentek
CABA MDENI ENERGY CENTRE
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Objectives of the energy centres
• Increase access to affordable energy services
• Delivering appropriate & safe fuels• Providing information about energy carriers• Awareness raising – policy making to
implementation• Reducing energy prices• Value adding energy retailing enterprises • Assist local authorities to incorporate
energy in planning • Integrate energy into wider community
needs
Environmentek
How does the model work?
The centre is by definition a public-private partnership with a community focus
PURELY MARKET BASED APPROACHES ARE NOT SUITABLE FOR RURAL CONTEXTSTherefore a hybrid approach that
combines relevant features of developmental & market based approaches
Environmentek
Energy issues for the poor in SA
Energy Centres
Rural
Households
Public
Buildings
Local Economic Activities
Local Govt Structures
National
Govt (DME)
Private Companies
Market/End-use Operations Enablers/Policy
Environmentek
IeC Finances (after Crompton 2004)
ENERGY
SHOPEDUCATION
JOBS
Sales
DonationsEquity
JOBS
Govt Projects
SETAS
Environmentek
Lessons learned
• Policy fit and role of government• Institutional realignment• Capacity building• Local level action planning• Active role of the private sector• Integrated planning of resources• Sustainable finance systems• Market development
Environmentek
Lessons Learned
Policy fit and role of government
Supporting policy environment to enable implementation
Policy vacuum of earlier attempts made it impossible to realise gains
•White Paper on Energy
•Renewable Energy White Paper
•Strategies to implement these policies
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Lessons Learned
Policy fit and role of government
Institutional realignment
Non-energy interventions
Investment in (strengthening of) local institutions
Integrated sustainable rural development strategy
Environmentek
Lessons Learned
Policy fit and role of governmentInstitutional realignment
Capacity buildingRole of international organisation (SEED Programme)
Role of local organisations
Extension officer on day-to-day interaction with rural communities
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Lessons Learned
Policy fit and role of governmentInstitutional realignmentCapacity building
Local level action planningLinked to capacity building – simultaneous
Workshop on identifying local development needs, resources and constraints
Systematically propose action plans on how address constraints using local resources
Exposure to wider society and knowledge (conference, other training, etc)
Identify best local organisation/model to carry forward
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Policy fit and role of governmentInstitutional realignmentCapacity buildingLocal level action planning
Active role of the private sectorCommunity-service provider interactions
Management training
Consignment of stock
Credit facilities
Lessons Learned
Environmentek
Lessons Learned
Policy fit and role of governmentInstitutional realignmentCapacity buildingLocal level action planningActive role of the private sector
Integrated planning of resources
Integrated Development Planning
Integrated Sustainable Rural Development Strategy
Local governance
Environmentek
Lessons Learned
Policy fit and role of governmentInstitutional realignmentCapacity buildingLocal level action planningActive role of the private sectorIntegrated planning of resources
Sustainable finance systemsConsignments from oil companies
Government funds for non-commercial activities
Development funding
Environmentek
Lessons learned
Policy fit and role of governmentInstitutional realignmentCapacity buildingLocal level action planningActive role of the private sectorIntegrated planning of resourcesSustainable finance systems
Market developmentCreate energy demand
Role of centres in productive activities
Synergies with other development initiatives
Environmentek
Independent evaluation of the IeCs
Provision of access to safe and affordable energy resources for low-income rural households
Provision of information about safe, efficient and environmentally sustainable energy source
Promotion of the SME sector and job opportunities through energy related businesses
Provision of access to safe energy appliances
Finally, influencing of policy on access to safe and affordable energy
Environmentek
Rural energisation is sustainable, but requires innovation in technology choice and implementation process
Environmentek
Thank you!!!
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