Finally Breaking the Barriers: South African case study on LPG use by low-income urban households

1. Finally Breaking the Barriers: South African case study on LPG use by low-income urban households IAEE Istanbul Workshop on Clean Cooking Fuels Date: 16 June 2008

2. Study background • In 2006, SA, particularly the Western Cape Province experienced severe power cuts • Power cuts mostly blamed on mechanical failures at a major power station • Energy efficiency initiatives driven by Eskom (electricity utility company) marked the change in energy use patterns for the country, especially for poor households • Two initiatives: Introduction of CFL lamps through an exchange programme and introduction of LPG for cooking at a large scale

3. Study objectives Research based in Khayelitsha, low income urban area 30km outside Cape Town • To get an update on primary data of fuel switching in urban areas, particularly focusing on LPG use • An analysis of an impact of power cuts on small and micro businesses in Khayelitsha • An analysis of impacts of LPG intervention wrt perceptions, behaviour change and finances • Recommendations on infrastructure needed to support consistent alternative energy supply such as gas in low-income areas

4. Key elements of technology promotion & diffusion • In this case electricity power cuts promoted alternative energy use • Involvement of high level stakeholders such as government and Eskom • Buy-in from people that will benefit from the intervention • Delivery strategy where service providers are in constant contact with people on the ground to satisfy needs of users

5. Key elements of market creation • Reliable supply of LPG was essential to convince users about the sustainability of the programme • Providing incentives such as vouchers and appliances • LPG prices have gone up since the intervention - lower prices can ensure a sustainable market • Service delivery method that creates employment for people using the LPG supply

6. Universality / diversity of cultural & behavioral factors • Power cuts made people aware of the electricity shortages in SA • Use of LPG has heightened awareness of the need to save energy • Change in cooking times as LPG is perceived as faster for cooking than electricity • Years of expressed fear in using LPG were erased by strategic awareness creation in LPG safety

7. Lessons learnt from study • Multiple-fuel use is still high amongst low-income urban areas despite having electricity connections for longer than 10 years • The gas cylinder, stove and vouchers were a good incentive for people to buy into the LPG programme • Issues of safety and fear of LPG were adequately addressed amongst the interviewed hhs – Percentage of people that perceived LPG as safe shot up from 35% in 2006 to 85% in 2007

8. Lessons learnt from study cont… • Education and training by LPG service providers contributed to take-up and sustainability of programme • Intervention created a market from LPG where there was none – only a very small % of people living in CT townships were using LPG before • Minor electricity savings were made during peak time in the area where cooking is concerned • One year later, 89% of respondents reported still using LPG, albeit not everyday

9. Study conclusions and recommendations • Many hhs in low-income areas still rely on “dirty” fuels such as paraffin (kerosene) using unreliable appliances • If delivery of reliable energy sources to low-income areas is to be achieved, there is a need for reliable service providers with an interest in sustainability

10. Study conclusions and recommendations cont… • Major stakeholders and decision makers need to play a leading role in introducing and delivery of sustainable energy sources • The interviews revealed that some hhs are interested in a wider range of LPG appliances – This calls for innovative thinking in creating such a market that will suit the low-income hhs

11. End Thank you nmohlakoana@hsrc.ac.za