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