Lessons from the South

1. Lessons from the South Monga Mehlwana – Energy Specialist ENERGY CENTRES

2. Social contrasts in satisfying energy needs

3. RSA Energy Overview: Energy Flows (After Surridge, DME, 2003) TRANSFORM TRANSPORT END USE SUPPLY Oil Refineries Rail Road Pipeline Liquid Fuels Oil Natural Gas PetroSA Gas Pipeline Sasol Export Road/Rail “Washery” Coal Coal Eskom and Others Electricity Transmission Wires Hydro Koeberg Nuclear Biomass Wood Person/Road

4. A Fundamental Challenge A fundamental challenge is to redefine the paradigm for sustainable development in energy context

5. 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

6. 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

7. 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

8. 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

9. Rural Energy Service Utility Model

10. Energy Store

11. Then Does it work? • 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 IMPLICATIONS: To make to work – government further announced intention of subsidising use of energy Local govt to fund this from fiscus. Difficulty in implementing the subsidy caused by miscommunication between national govt, local govt and concessionaires

12. 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

13. Lessons from Energisation • rural participation in planning & implementation of initiatives • Transformation of energy needsinto 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

14. 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

15. CABA MDENI ENERGY CENTRE

16. 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

17. 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 CONTEXTS Therefore a hybrid approach that combines relevant features of developmental & market based approaches

18. Energy issues for the poor in SA

19. IeC Finances (after Crompton 2004) Donations Govt Projects SETAS Equity ENERGY SHOP JOBS EDUCATION JOBS Sales

20. 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

21. 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

22. Lessons Learned Policy fit and role of government Institutional realignment Non-energy interventions Investment in (strengthening of) local institutions Integrated sustainable rural development strategy

23. Lessons Learned Policy fit and role of government Institutional realignment Capacity building Role of international organisation (SEED Programme) Role of local organisations Extension officer on day-to-day interaction with rural communities

24. Lessons Learned Policy fit and role of government Institutional realignment Capacity building Local level action planning Linked 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

25. Lessons Learned Policy fit and role of government Institutional realignment Capacity building Local level action planning Active role of the private sector Community-service provider interactions Management training Consignment of stock Credit facilities

26. 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 Integrated Development Planning Integrated Sustainable Rural Development Strategy Local governance

27. 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 Consignments from oil companies Government funds for non-commercial activities Development funding

28. 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 Create energy demand Role of centres in productive activities Synergies with other development initiatives

29. 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

30. Rural energisation is sustainable, but requires innovation in technology choice and implementation process

31. Thank you!!!