1. UNEP Workshop Energy Access, Cape Town, May 2009 Energy security and development Philip Lloyd Energy Institute Cape Peninsula University of Technology

2. UNEP Workshop Energy Access, Cape Town, May 2009 What I would like to say Energy security is something we have come to expect as a right Poverty knows no rights –This is as true for energy as for anything else The challenge is at its keenest in rural areas In developed societies, and semi-urban or urban environments, affordability is the prime concern In developing societies, energy security can be challenging even in urban environments

3. UNEP Workshop Energy Access, Cape Town, May 2009 Energy Security as a Right In developed societies it is difficult not to believe that the benefits which energy confers are not ‘automatic’, that they are not a ‘right’ The developed world recognizes that there is a direct link between energy availability and economic development –The IEA models the growth in energy demand as driven primarily by population and economic growth Loss of power, or loss of fuel, are recalled as temporary aberrations in an otherwise ever-reliable system –14 August 2003 is remembered over NE US & Canada – 55 million affected

4. UNEP Workshop Energy Access, Cape Town, May 2009 Poverty knows no rights However, the poor, in whatever society they live, know energy security as a fact of life. In some developed societies, this is recognised explicitly –For instance, in many parts of Europe and US the elderly and poor are given a heating allowance in winter But generally, poverty means either consuming less or going without Because there is a linkage between energy and wealth, lack of energy security means lack of wealth – poverty is its own worst enemy

5. UNEP Workshop Energy Access, Cape Town, May 2009 The Rural Challenge It is recognised that energy security is lowest in rural areas worldwide Relatively low population density means the per capita cost of distribution of energy is high –Eskom sets a limit of >50 homes/sq km The problem is particular severe in Africa, where lack of infrastructure means distribution of energy is singularly difficult

6. UNEP Workshop Energy Access, Cape Town, May 2009 The Rural Challenge II Data are rather hard to come by Quite a good idea can be gained from South Africa –Its census data includes energy use –http://www.statssa.gov.za/http://www.statssa.gov.za/ If we just look at cooking, electricity dominates in cities, wood and paraffin share the rural load, with gas in wood-poor areas, and animal dung not insignificant

7. UNEP Workshop Energy Access, Cape Town, May 2009

8. The Rural Challenge III In many rural areas, energy security is only achieved by adopting multi-fuel strategies –In rural Kwa Zulu Natal, we found the average household had three cooking appliances Wood, paraffin for when it rained, gas for when there was a party Wood was harvested throughout the day, from 2a.m. to 11p.m. Gas in that area cost 3x what it cost in the cities Solar cookers had been abandoned

9. UNEP Workshop Energy Access, Cape Town, May 2009 The Rural Challenge IV Demands for modern communications/ entertainment are met by batteries –100% coverage of radio, in use 18h/day –Frustration with cellphones, not readily recharged One of the major demands for solar, usually using stolen PV panels “Backyard” PV installation and maintenance works!

10. UNEP Workshop Energy Access, Cape Town, May 2009 The Rural Challenge V In many areas, wood is NOT readily available Ever-increasing distances must be covered for harvesting The woodlot solution has generally not been successful Also, there may be a preference for particular species; other wood may be plentiful, but the desired species is brought in from as much as 200km away –In such cases it takes on considerable value

11. UNEP Workshop Energy Access, Cape Town, May 2009 The Rural Challenge VI In many parts of Africa, rural energy security is threatened because cities are energised using charcoal –Charcoal is employed because the transport costs per unit of energy transported is much lower than transporting wood But the production of charcoal is a very inefficient use of wood Extensive deforestation is the result One should not stress climate change impacts of deforestation in this context – see Chad!

12. UNEP Workshop Energy Access, Cape Town, May 2009 The Semi-Urban Challenge In developed societies, there is generally no real problem in either semi-urban or urban contexts –The distribution networks needed to provide modern energy services are taken as part of the essential infrastructure In developing societies, many semi-urban communities are ‘informal’ –Energy services – indeed, all forms of service – are rudimentary

13. UNEP Workshop Energy Access, Cape Town, May 2009 The Semi-Urban Challenge II The community being ‘informal’, cash reserves are low Energy security is impacted by lack of cash, yet there is reliance on money to purchase essential services of all kinds The net result is that energy security is weak, and there are no proven strategies for overcoming the weakness

14. UNEP Workshop Energy Access, Cape Town, May 2009 The Semi-Urban Challenge III Nevertheless, some strategies are in place Multi-fuelling is prime –For instance, using a free basic electricity allowance until it is consumed, then switching to paraffin –Borrowing a cupful of paraffin, or a hubcap of coal, until pay day –Utilising any combustible waste The urban waste from Soweto is essentially free of combustibles in winter

15. UNEP Workshop Energy Access, Cape Town, May 2009 The Semi-Urban Challenge IV Sometimes security is achieved at a cost –Space heating on the South African ‘highveld’ is by coal, which is cheap, but the appliances in which to burn coal are expensive –Low-income families use ‘mbaulas’ – open braziers – to burn the coal with awful indoor air pollution, and consequent respiratory ailments –Similarly the widespread use of paraffin in ‘affordable’ appliances leads to massive fires and loss of life

16. UNEP Workshop Energy Access, Cape Town, May 2009 The Semi-Urban Challenge V One of the clear signals that lower-income families try to choose the cheapest option is the low takeup of electricity –Many homes in electrified areas still cook and heat space using thermal fuels such as coal and paraffin Extensive research has failed to show that provision of electricity significantly raises household income –Although small retail services are widespread, use of refrigerators prominent

17. UNEP Workshop Energy Access, Cape Town, May 2009 The Urban Challenge Many developing societies have yet to achieve widespread servicing of even major cities Lack of energy security holds back all kinds of development –Factories can only work when there is power –Standby generators only work if fuel distribution is efficient These are endemic to development everywhere

18. UNEP Workshop Energy Access, Cape Town, May 2009 To conclude Energy security affects all levels of society in developing nations Achieving energy security is critical to social and economic growth Massive capital is needed to achieve this, which is in short supply High levels of skill are also needed to maintain the energy infrastructure and ensure it achieves its economic life

19. UNEP Workshop Energy Access, Cape Town, May 2009 Thank you! And thanks also to: CPUT for hosting me The organisers for inviting me The People for educating me about what energy security really means in their lives