Rural Energy Policy in Africa: Past and Future Directions

1. Rural Energy Policy in Africa:Past and Future Directions Prof. Ogunlade Davidson Dean Faculty of Engineering, University of Sierra Leone Presented by Monga Mehlwana CSIR, South Africa

2. Outline of Presentation • Africa in the global energy context • Energy situation in Africa • Rural energy system • Past policies • Outcomes of past Policies • Future directions for rural energy policies • Conclusions

3. Household Income and Electricity access China Thailand Costa Rica Malaysia Tunisia Mexico Sri Lanka Indonesia Morocco Household access to electricity South Africa Philippines 0 25 50 75 100 Pakistan Nigeria India Cote d’Ivoire Ghana Bangladesh Zambia Zimbabwe Tanzania Uganda 0 1000 2000 3000 4000 GNP/Capita 1998 $

4. Electricity Situation of Africa • Africa is the least consumer among developing countries • Africa needs to increase its overall net productivity significantly if they should compete with other developing countries • Africa needs substantial energy supply as incremental growth will do very little to for the continent

5. 350 300 250 200 Gigajoules 150 100 50 0 CIS S.Asia C.P Asia Jap, Aus, S.S.Africa W.Europe L.America N.America C&E Europe M.E&N.Africa Pac. Asia Energy Situation in Africa • Rich in renewable and non-renewable energy resources, but least consumer of modern energy globally • Large quantities yet to be exploited • Energy infrastructure very weak and poor integrated networks • Two –thirds of modern energy produced is exported • Very high level of suppressed demand for modern energy services • African rural system significant and unique • Energy investments very low and geared to exports Primary Energy Use, 1995

6. Rural Africa vary by region Scattered, bumpy and poor • Over 500 million people live in African rural areas • The only region that number of rural people are growing • Energy system is very primitive • Weak cash economy Motor-able and rich

7. African Rural Energy System • Heavy Dependency on Traditional Biomass and Human Energy • Little use and/or Access to Modern Energy Forms • Decentralized and Dispersed Energy Requirement • Lack of Basic Energy Infrastructure

8. Existing Conditions in Rural Areas • Energy Utilities • lack of capital and no access • Poorfinancial management • Weak operational performance • Private sector base • Lack of credibility to financial institutions • Poor training • Low investments and poor enabling environment • Low purchasing power • Weak energy infrastructure and policy and economic constraints to move to more modern fuels

9. Selected Energy Data for Africa Countries

10. Environmental Impacts Deforestation, Soil Erosion, Pressure on Ecosystems, Desertification, etc. Intensify Pressure on Natural Resources Indoor Air Pollution and Related Health Problems Acceleration of Land Cover Changes and Loss of Biodiversity Social Impacts Expansion/Increase Of Rural Poverty Increase Of Social Disparities Exclusion Of The Poor From The Emerging Energy Transition The Poor Pays More Than Others For Same Energy Services Rural To Urban Migration IMPACTS OF CURRENT ENERGY POLICIES AND PRACTISES

11. NEPAD To Develop Sustainably African Vast Energy Resources for Increased Productivity, Wealth Creation and Improved Quality of Life for Africans

12. Think Big Act Fast: Rural Transformation • 1. Objective: Facilitate Integration of Energy within Rural Integrated Development Planning Context and stimulating the productive sector in rural areas • HOW: • Develop integrated Resource Plans Aimed at improving the incomes of Rural Areas • Facilitate scale- up of mechanisation and expansion of agricultural system • Assist in setting an energy system that ensures increased value added in rural products

13. Natural Gas in Africa: Untapped Resource • Africa has major opportunities for growth in the energy sector • Natural gas development is one of such opportunity

14. Suggested Rural Energy Strategy • Re-visit integration of grid & off-grid electrification in rural areas • Grid electrification planning should involve communities to allow for success. • Monitoring of service provision should be locally-driven • Strengthen links between local community structures and government development projects. • Development projects should start with community involvement even from the design stage. • Limitations of energy service provision should be clearly communicated from the start. • Energy solutions should be adapted to suit local basic needs as expressed by the people. • Energy solutions should support job creation/ income generation to improve livelihood.

15. Elements of New Policies • Better use of Kerosene and LPG • Decentralised Electricity Systems • Centralised Electricity • Improved use biomass systems • Part of African Energy Information system • Education facilities for all • Decentralised decision-making • Mechanisms for micro-financing and entrepreneurship

16. Energy Institutional Development Energy Store in Kwazulu Natal South Africa • Development of “One-stop shop • Customer services • Provision of energy services • Telephone • Kerosene • Electricity • Water

17. African Rural Enterprise Development (AREED)Enterprise Centered Model Enterprise Development Services Start-up Financing Entrepreneur Customers Energy Services

18. AREED CONCEPT SME Energy Development -Local Partnership Capacity building -Financial Institution linkage -Policy linkage Multifunctional Platform Mali Charcoal from Sawdust Zambia LPG Distribution Ghana Wind Powered Water Pump Senegal

19. RENEWABLE ENERGY DEVELOPMENT Solar Dish Household Solar System School Solar system Modern Wind System

20. CONCLUSIONS • Energy in Rural Africa is complex: need for combination of approaches • Diversification of driving forces: • Thematic • Geographical • Financial • Review overall energy policies • Demand-driven approach/Supply-driven Approach • Revisiting Renewable Energy Diffusion Strategies • More Social And Institutional Innovation • Development Of Information Technology And Networking