Environmentek Lessons from the South Monga Mehlwana – Energy Specialist ENERGY CENTRES

Environmentek Social contrasts in satisfying energy needs

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

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

Environmentek 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

Environmentek 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

Environmentek 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

Environmentek 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

Environmentek Rural Energy Service Utility Model

Environmentek Energy Store

Environmentek 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 Does it work? Then 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

Environmentek 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

Environmentek Lessons from Energisation rural participation in planning & implementation of initiatives Transformation of energy needs into 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

Environmentek 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

Environmentek CABA MDENI ENERGY CENTRE

Environmentek 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

Environmentek 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

Environmentek Energy issues for the poor in SA

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

Environmentek 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

Environmentek 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

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

Environmentek 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

Environmentek 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

Environmentek 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 Lessons Learned

Environmentek 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

Environmentek 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

Environmentek 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

Environmentek 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

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

Environmentek Thank you!!!