Electrification Challenge in Rural Areas - Revision history

Johanna: /* Further Information */

2020-03-24T18:26:10Z

Further Information

Katharina Wiedemann at 15:13, 30 November 2012

2012-11-30T15:13:54Z

Katharina Wiedemann at 15:06, 30 November 2012

2012-11-30T15:06:12Z

Katharina Wiedemann at 14:59, 30 November 2012

2012-11-30T14:59:54Z

Katharina Wiedemann: Created page with "= Overview
= Without the provision of modern energy and electricity there is no support for socio-economic development and improvement of the li..."

2012-11-30T10:37:33Z

Created page with "= Overview = Without the provision of modern energy and electricity there is no support for socio-economic development and improvement of the li..."

New page

= Overview =

Without the [[Access_to_Modern_Energy|provision of modern energy]] and electricity there is no support for socio-economic development and improvement of the living conditions in rural areas in developing countries. Although the awareness of the importance of reliable electricity infrastructure is given there are still about 20% of the global population who have no access to electricity. Based on current trends, 1.2 billion people (15% of the world’s population) will still lack access in 2030<ref name="http://www.iea.org/speech/2010/Tanaka/WEO_Energy_Poverty_2010.pdf">http://www.iea.org/speech/2010/Tanaka/WEO_Energy_Poverty_2010.pdf</ref>. This means the financial framework and the enabling environment (appropriate and sustainable political, legislative, organisational and finacial circumstances) in the developing countries are by far the most important determinants for successfull electrification. But it also requires improved international cooperation.

= Facts and Figures =

*From over 1.4 billion people without access to electricity 85% are coming from rural areas<ref name="ELECTRA no 259, Invited Papers, The global electrification challenge the case of rural and remote areas, Adriaan Zomers, Dan Waddle, Joseph Mutale, Annemarije Kooijman-van Dijk">ELECTRA no 259, Invited Papers, The global electrification challenge the case of rural and remote areas, Adriaan Zomers, Dan Waddle, Joseph Mutale, Annemarije Kooijman-van Dijk</ref>
*Over 1 billion people have no reliable power supply (unplanned power outages, massive losses, power quality issues) and most of them are poor and living in rural and remote areas in developing coutries<ref name="ELECTRA no 259, Invited Papers, The global electrification challenge the case of rural and remote areas, Adriaan Zomers, Dan Waddle, Joseph Mutale, Annemarije Kooijman-van Dijk">ELECTRA no 259, Invited Papers, The global electrification challenge the case of rural and remote areas, Adriaan Zomers, Dan Waddle, Joseph Mutale, Annemarije Kooijman-van Dijk</ref>
*Sub-Saharan Africa: about 70% of the population lacks access to electricity and 85% of them live in rural areas<ref name="ELECTRA no 259, Invited Papers, The global electrification challenge the case of rural and remote areas, Adriaan Zomers, Dan Waddle, Joseph Mutale, Annemarije Kooijman-van Dijk">ELECTRA no 259, Invited Papers, The global electrification challenge the case of rural and remote areas, Adriaan Zomers, Dan Waddle, Joseph Mutale, Annemarije Kooijman-van Dijk</ref>
*South Asia: about 50% have no access to electricity<ref name="ELECTRA no 259, Invited Papers, The global electrification challenge the case of rural and remote areas, Adriaan Zomers, Dan Waddle, Joseph Mutale, Annemarije Kooijman-van Dijk">ELECTRA no 259, Invited Papers, The global electrification challenge the case of rural and remote areas, Adriaan Zomers, Dan Waddle, Joseph Mutale, Annemarije Kooijman-van Dijk</ref>
*Between 2011 and 2050, the world population is expected to increase by 2.3 billion, passing from 7.0 billion to 9.3 billion<ref name="United Nations, 2011">United Nations, 2011</ref>
*Urbanisation will continue: the urban population will grow (from 3.6 billion in 2011 to 6.3 billion 2050) and there will likely be 0.3 billion fewer rural inhabitants in 2050<ref name="http://esa.un.org/unup/pdf/WUP2011_Highlights.pdf">http://esa.un.org/unup/pdf/WUP2011_Highlights.pdf</ref>
*Between 2008 and 2030 cumulative global power sector investments of US$ 13.7 trillion are needed to meet the expected groth in electricity demand and replace obsolete infrastucture<ref name="ELECTRA no 259, Invited Papers, The global electrification challenge the case of rural and remote areas, Adriaan Zomers, Dan Waddle, Joseph Mutale, Annemarije Kooijman-van Dijk">ELECTRA no 259, Invited Papers, The global electrification challenge the case of rural and remote areas, Adriaan Zomers, Dan Waddle, Joseph Mutale, Annemarije Kooijman-van Dijk</ref>.
*Energy costs in rural, underdeveloped areas are dispropriationately higher per connected consumer than they are in urbanized areas (grid systems are more developed and service providers have a higher incentive to probide higher queality and generally, lower cost service)<ref name="ELECTRA no 259, Invited Papers, The global electrification challenge the case of rural and remote areas, Adriaan Zomers, Dan Waddle, Joseph Mutale, Annemarije Kooijman-van Dijk">ELECTRA no 259, Invited Papers, The global electrification challenge the case of rural and remote areas, Adriaan Zomers, Dan Waddle, Joseph Mutale, Annemarije Kooijman-van Dijk</ref>

= Universal Access to Electricity in 2030 =

The Energy Access Practitioner Network (supported by the UN Secretary-General's "[http://www.sustainableenergyforall.org/ Sustainable Energy for All]" initiative) defined 3 interrelated objectives by 2030<ref name="http://www.sustainableenergyforall.org/images/content/FINAL%20ESG%20ALL.pdf">http://www.sustainableenergyforall.org/images/content/FINAL%20ESG%20ALL.pdf</ref>:

*Universal access to modern energy services
*Doubling the global rate of improvement in energy efficiency
*Doubling the share of renewable energy in the global energy mix

To finally power opportunity, maximize development benefits and help stabilize the climate change with this three goals, significant hurdles must be overcome<ref name="Electra">ELECTRA no 259, Invited Papers, The global electrification challenge the case of rural and remote areas, Adriaan Zomers, Dan Waddle, Joseph Mutale, Annemarije Kooijman-van Dijk</ref>: '''High captial costs''' (the actual costs are site and technology specific and vary enormous) '''Lack of incentives''' as extending the access to electricity to rural areas is commonly a loss making activity (depending on external support from the government / aid organizations) '''Financial recources'''

== Estimated Costs<ref name="ELECTRA">ELECTRA no 259, Invited Papers, The global electrification challenge the case of rural and remote areas, Adriaan Zomers, Dan Waddle, Joseph Mutale, Annemarije Kooijman-van Dijk</ref> ==

Assumed costs:

*rural grid connection: US$ 2,000
*urban grid connection US$ 1,200
*mini/ off grid connection US$ 1,200

According to these assumed costs a total investment of '''US$ 752 billion''' That would mean:

*urban grid: US$ 418 billion
*rural grid:US$ 140 billion
*rural off-grid: US$ 48 billion
*rural mini-grid:US$ 146 billion

US$ 752 billion is just 5% of the total investments needed in the global power sector until 2030.

Rural communities are already using commercial energy with extremely high prices. These traditional sources of commercial energy include dry cell batteries, candles, kerosene and diesel. In a study financed by the word bank Yemen<ref>NRECA (2007), "National Rural Electrification Strategy for Yemen: Phase III Final Report", NRECA, Arlington</ref>, the cost per kilo-Lumen hour for light derived from candles and kerosene was US$0.145, while the cost for grid-supplied electricity was a mere US$0.008/kilo Lumen-hour. New delivery systems have to be found to provide electric servide to millions of households in rural areas of Artica and Asia without reliable commercial service. As the consumption of rural households power is in general considerably smaller than in urban areas it is not necessarily more expensive to install. They can be engineered to supply the identified needs at an appropriate cost<ref>Gaunt, C.T, (2003). "Electrification technology and processes to meet economic and social objectives in Southern Africa". University of Cape Town: http://web.uct.ac.za/staff/gaunt/PhDgaunt.pdf</ref>.

= Socio-economic Context =

It is very crucial to understand the socio-economic context as it plays an important role in achieving the '''Millenium Development Goals (MDGs)''' linked to energy supply. The uptake of energy services and their application by the end user is needed.

== Influencing the Demand ==

Living in a town or in an urban area makes a huge difference in defining the energy demand. The demand for electricity in urban and rural town areas is mostly dominated by industrial uses and large service locations. However in rural areas the demand for electricity is defined by household energy demands, needs for irrigation and local agro porcessing or other natural resource telated enterprises such as mines. Micro scale enterprises have demands not much larger in terms of capacity requirement but yet different from households. The energy demands for those enterprises are more difficult to predict and also depend very much on the local socio-economic context in which the enterprises operate.

When depeloping the electricity supply for households or enterprises the current consumption patterns need to be observed but also some capacity for growth needs to be taken into account.

== Influencing the Impacts ==

To reach the development goals (improving health care and education, increasing leavel of incomes to cross the poverty line) the access to modern energy is a necessary condition. Lighting of homes and schools will have an infuence on the '''education''' as this allows studying at home even when its dark and will attract teachers to rural schools. Also impacts related to '''health''' topics are possible by improving cooking situations, boiling water and cooling food for e.g. hygien.

The impact of electricity on '''incomes''' (especially the non-farm sector) is more complex and little understood. Its important here that the impact materialises especially for the poor. The first to benefit in terms of income generation from new energy access are the more wealthy entrepreneurs within the community.

Social assets rather than financial or other assets are the key to the realisation of increasing incomes making use of new opportunities provided by modern energy supply, which implies:

*rural electrification projects where a proper market connection is not yet existing need additional activities realated to business support to really meet the poor
*a secondary role are playing the activities in (micro)-finance or other '''Business Development Services (BDS)''' as they are only enhance the benefit of electricity for those who have access already but doesn't reach the majority of the poor.

Impacts on the incomes are also relevant for the stakeholders in the energy supply as they are having incomes and therewith higher ability to pay for the energy services.

Especially when realiability and predictability (e.g. enterprise operations) is important the quality of energy supply is playing an important role of influencing the impacts.

= Conclusion =

To speed up the electrification of the more remote communities in developing countries further technical innovation and cost reduction is necessary. Further development of currently known technologies (central grid systems and off-grid options) are expected.

= Further Information =

*[http://www.cigre.org/Electra/N-259 ELECTA No 259, December 2011] [http://www.sustainableenergyforall.org/images/content/FINAL%20ESG%20ALL.pdf Energy Access Practitioner Network, Towards Achieving Universal Energy Access by 2030, Published by the United Nations Foundation, June 2012]

= References =

This article is an abstract of the article in ELECTRA no 259, Invited Papers, "The global electrification challenge the case of rural and remote areas", Adriaan Zomers, Dan Waddle, Joseph Mutale, Annemarije Kooijman-van Dijk

<references />

[[Category:Energy_Access]]

@@ Line 95: / Line 95: @@
 To speed up the electrification of the more remote communities in developing countries further technical innovation and cost reduction is necessary. Further development of currently known technologies (central grid systems and off-grid options) is expected.
@@ Line 100: / Line 101: @@
 = Further Information<br/> =
-*[http://www.cigre.org/Electra/N-259 ELECTA No 259, December 2011] [http://www.sustainableenergyforall.org/images/content/FINAL%20ESG%20ALL.pdf Energy Access Practitioner Network, Towards Achieving Universal Energy Access by 2030, Published by the United Nations Foundation, June 2012]
+*[http://www.cigre.org/Electra/N-259 ELECTA No 259, December 2011] [http://www.sustainableenergyforall.org/images/content/FINAL_ESG_ALL.pdf Energy Access Practitioner Network, Towards Achieving Universal Energy Access by 2030, Published by the United Nations Foundation, June 2012]
+*[[Impacts_of_Rural_Electrification_in_Uganda_2011-2019|Impacts of Rural Electrification in Uganda 2011-2019]]

@@ Line 14: / Line 14: @@
 *Urbanization will continue: the urban population will grow (from 3.6 billion in 2011 to 6.3 billion 2050) and there will likely be 0.3 billion fewer rural inhabitants in 2050<ref name="http://esa.un.org/unup/pdf/WUP2011_Highlights.pdf">http://esa.un.org/unup/pdf/WUP2011_Highlights.pdf</ref>
 *Between 2008 and 2030 cumulative global power sector investments of US$ 13.7 trillion are needed to meet the expected growth in electricity demand and replace obsolete infrastructure<ref name="ELECTRA no 259, Invited Papers, The global electrification challenge the case of rural and remote areas, Adriaan Zomers, Dan Waddle, Joseph Mutale, Annemarije Kooijman-van Dijk">ELECTRA no 259, Invited Papers, The global electrification challenge the case of rural and remote areas, Adriaan Zomers, Dan Waddle, Joseph Mutale, Annemarije Kooijman-van Dijk</ref>.
-*Energy costs in rural, underdeveloped areas are disproportionately<span id="taw" style="margin-right: 0px"> </span>higher per connected consumer than they are in urbanized areas (grid systems are more developed and service providers have a higher incentive to provide higher quality and generally, lower cost service)<ref name="ELECTRA no 259, Invited Papers, The global electrification challenge the case of rural and remote areas, Adriaan Zomers, Dan Waddle, Joseph Mutale, Annemarije Kooijman-van Dijk">ELECTRA no 259, Invited Papers, The global electrification challenge the case of rural and remote areas, Adriaan Zomers, Dan Waddle, Joseph Mutale, Annemarije Kooijman-van Dijk</ref>
+*Energy costs in rural, underdeveloped areas are disproportionately<span id="taw" style="margin-right: 0px"></span>higher per connected consumer than they are in urbanized areas (grid systems are more developed and service providers have a higher incentive to provide higher quality and generally, lower cost service)<ref name="ELECTRA no 259, Invited Papers, The global electrification challenge the case of rural and remote areas, Adriaan Zomers, Dan Waddle, Joseph Mutale, Annemarije Kooijman-van Dijk">ELECTRA no 259, Invited Papers, The global electrification challenge the case of rural and remote areas, Adriaan Zomers, Dan Waddle, Joseph Mutale, Annemarije Kooijman-van Dijk</ref>
@@ Line 28: / Line 28: @@
-<u>To finally power opportunity, maximize development benefits and help stabilize the climate change with this three goals, significant hurdles must be overcome<ref name="Electra">ELECTRA no 259, Invited Papers, The global electrification challenge the case of rural and remote areas, Adriaan Zomers, Dan Waddle, Joseph Mutale, Annemarije Kooijman-van Dijk</ref>:</u> '''High captial costs''' (the actual costs are site and technology specific and vary enormous) '''Lack of incentives''' as extending the access to electricity to rural areas is commonly a loss making activity (depending on external support from the government / aid organizations) '''Financial recources'''
+<u>To finally power opportunity, maximize development benefits and help stabilize the climate change with this three goals, significant hurdles must be overcome<ref name="Electra">ELECTRA no 259, Invited Papers, The global electrification challenge the case of rural and remote areas, Adriaan Zomers, Dan Waddle, Joseph Mutale, Annemarije Kooijman-van Dijk</ref>:</u> '''High capital costs''' (the actual costs are site and technology specific and vary enormous) '''Lack of incentives''' as extending the access to electricity to rural areas is commonly a loss making activity (depending on external support from the government / aid organizations) '''Financial resources'''
@@ Line 37: / Line 37: @@
 *rural grid connection: US$ 2,000
-*urban grid connection US$ 1,200
+*urban grid connection: US$ 1,200
-*mini/ off grid connection US$ 1,200
+*mini/ off grid connection: US$ 1,200
-According to these assumed costs a total investment of '''US$ 752 billion''' <u>That would mean:</u>
+According to these assumed costs a total investment of '''US$ 752 billion''' <u>that would mean:</u>
 *urban grid: US$ 418 billion
-*rural grid:US$ 140 billion
+*rural grid: US$ 140 billion
 *rural off-grid: US$ 48 billion
-*rural mini-grid:US$ 146 billion
+*rural mini-grid: US$ 146 billion
@@ Line 55: / Line 55: @@
-Rural communities are already using commercial energy with extremely high prices. These traditional sources of commercial energy include dry cell batteries, candles, kerosene and diesel. In a study financed by the word bank Yemen<ref>NRECA (2007), "National Rural Electrification Strategy for Yemen: Phase III Final Report", NRECA, Arlington</ref>, the cost per kilo-Lumen hour for light derived from candles and kerosene was US$0.145, while the cost for grid-supplied electricity was a mere US$0.008/kilo Lumen-hour. New delivery systems have to be found to provide electric servide to millions of households in rural areas of Artica and Asia without reliable commercial service. As the consumption of rural households power is in general considerably smaller than in urban areas it is not necessarily more expensive to install. They can be engineered to supply the identified needs at an appropriate cost<ref>Gaunt, C.T, (2003). "Electrification technology and processes to meet economic and social objectives in Southern Africa". University of Cape Town: http://web.uct.ac.za/staff/gaunt/PhDgaunt.pdf</ref>.
+Rural communities are already using commercial energy with extremely high prices. These traditional sources of commercial energy include dry cell batteries, candles, kerosene and diesel. In a study financed by the word bank Yemen<ref>NRECA (2007), "National Rural Electrification Strategy for Yemen: Phase III Final Report", NRECA, Arlington</ref>, the cost per kilo-Lumen hour for light derived from candles and kerosene was US$0.145, while the cost for grid-supplied electricity was a mere US$0.008/kilo Lumen-hour. New delivery systems have to be found to provide electric servise to millions of households in rural areas of Africa and Asia without reliable commercial service. As the consumption of rural households power is in general considerably smaller than in urban areas it is not necessarily more expensive to install. They can be engineered to supply the identified needs at an appropriate cost<ref>Gaunt, C.T, (2003). "Electrification technology and processes to meet economic and social objectives in Southern Africa". University of Cape Town: http://web.uct.ac.za/staff/gaunt/PhDgaunt.pdf</ref>.
@@ Line 61: / Line 61: @@
 = Socio-economic Context<br/> =
-It is very crucial to understand the socio-economic context as it plays an important role in achieving the '''Millenium Development Goals (MDGs)''' linked to energy supply. The uptake of energy services and their application by the end user is needed.
+It is very crucial to understand the socio-economic context as it plays an important role in achieving the '''Millennium Development Goals (MDGs)''' linked to energy supply. The uptake of energy services and their application by the end user is needed.
@@ Line 67: / Line 67: @@
 == Influencing the Demand<br/> ==
-Living in a town or in an urban area makes a huge difference in defining the energy demand. The demand for electricity in urban and rural town areas is mostly dominated by industrial uses and large service locations. However in rural areas the demand for electricity is defined by household energy demands, needs for irrigation and local agro porcessing or other natural resource telated enterprises such as mines. Micro scale enterprises have demands not much larger in terms of capacity requirement but yet different from households. The energy demands for those enterprises are more difficult to predict and also depend very much on the local socio-economic context in which the enterprises operate.
+Living in a town or in an urban area makes a huge difference in defining the energy demand. The demand for electricity in urban and rural town areas is mostly dominated by industrial uses and large service locations. However in rural areas the demand for electricity is defined by household energy demands, needs for irrigation and local agro processing or other natural resource related enterprises such as mines. Micro scale enterprises have demands not much larger in terms of capacity requirement but yet different from households. The energy demands for those enterprises are more difficult to predict and also depend very much on the local socio-economic context in which the enterprises operate.
-When depeloping the electricity supply for households or enterprises the current consumption patterns need to be observed but also some capacity for growth needs to be taken into account.
+When developing the electricity supply for households or enterprises the current consumption patterns need to be observed but also some capacity for growth needs to be taken into account.
@@ Line 75: / Line 75: @@
 == Influencing the Impacts<br/> ==
-To reach the development goals (improving health care and education, increasing leavel of incomes to cross the poverty line) the access to modern energy is a necessary condition. Lighting of homes and schools will have an infuence on the '''education''' as this allows studying at home even when its dark and will attract teachers to rural schools. Also impacts related to '''health''' topics are possible by improving cooking situations, boiling water and cooling food for e.g. hygien.
+To reach the development goals (improving health care and education, increasing level of incomes to cross the poverty line) the access to modern energy is a necessary condition. Lighting of homes and schools will have an influence on the '''education''' as this allows studying at home even when its dark and will attract teachers to rural schools. Also impacts related to '''health''' topics are possible by improving cooking situations, boiling water and cooling food for e.g. hygiene.
-The impact of electricity on '''incomes''' (especially the non-farm sector) is more complex and little understood. Its important here that the impact materialises especially for the poor. The first to benefit in terms of income generation from new energy access are the more wealthy entrepreneurs within the community.
+The impact of electricity on '''incomes''' (especially the non-farm sector) is more complex and little understood. Its important here that the impact materializes especially for the poor. The first to benefit in terms of income generation from new energy access are the more wealthy entrepreneurs within the community.
-<u>Social assets rather than financial or other assets are the key to the realisation of increasing incomes making use of new opportunities provided by modern energy supply, which implies:</u>
+<u>Social assets rather than financial or other assets are the key to the realization of increasing incomes making use of new opportunities provided by modern energy supply, which implies:</u>
-*rural electrification projects where a proper market connection is not yet existing need additional activities realated to business support to really meet the poor
+*rural electrification projects where a proper market connection is not yet existing need additional activities related to business support to really meet the poor
 *a secondary role are playing the activities in (micro)-finance or other '''Business Development Services (BDS)''' as they are only enhance the benefit of electricity for those who have access already but doesn't reach the majority of the poor.
@@ Line 88: / Line 88: @@
-Especially when realiability and predictability (e.g. enterprise operations) is important the quality of energy supply is playing an important role of influencing the impacts.
+Especially when reliability and predictability (e.g. enterprise operations) is important the quality of energy supply is playing an important role of influencing the impacts.
@@ Line 94: / Line 94: @@
 = Conclusion<br/> =
-To speed up the electrification of the more remote communities in developing countries further technical innovation and cost reduction is necessary. Further development of currently known technologies (central grid systems and off-grid options) are expected.
+To speed up the electrification of the more remote communities in developing countries further technical innovation and cost reduction is necessary. Further development of currently known technologies (central grid systems and off-grid options) is expected.

← Older revision		Revision as of 14:59, 30 November 2012
Line 1:		Line 1:
	= Overview<br/> =		= Overview<br/> =

−	Without the [[~~Access_to_Modern_Energy~~\|provision of modern energy]] and electricity there is no support for socio-economic development and improvement of the living conditions in rural areas in developing countries. Although the awareness of the importance of reliable electricity infrastructure is given there are still about 20% of the global ~~population~~ who have no access to electricity. Based on current trends, 1.2 billion people (15% of the world’s population) will still lack access in 2030<ref name="http://www.iea.org/speech/2010/Tanaka/WEO_Energy_Poverty_2010.pdf">http://www.iea.org/speech/2010/Tanaka/WEO_Energy_Poverty_2010.pdf</ref>. This means the financial framework and the enabling environment (appropriate and sustainable political, legislative, ~~organisational~~ and ~~finacial~~ circumstances) in the developing countries are by far the most important determinants for ~~successfull~~ electrification. But it also requires improved international cooperation.	+	Without the [[Access to Modern Energy\|provision of modern energy]] and electricity there is no support for socio-economic development and improvement of the living conditions in rural areas in developing countries. Although the awareness of the importance of reliable electricity infrastructure is given there are still about 20% of the global populations who have no access to electricity. Based on current trends, 1.2 billion people (15% of the world’s population) will still lack access in 2030<ref name="http://www.iea.org/speech/2010/Tanaka/WEO_Energy_Poverty_2010.pdf">http://www.iea.org/speech/2010/Tanaka/WEO_Energy_Poverty_2010.pdf</ref>. This means the financial framework and the enabling environment (appropriate and sustainable political, legislative, organizational and financial circumstances) in the developing countries are by far the most important determinants for successful electrification. But it also requires improved international cooperation.