arusha | jun-14 | ewan bloomfield, village level energy access in east africa

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Village Level Energy Access in East Africa Ewan Bloomfield, International Energy Consultant

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The workshop in Arusha explored the East African/Tanzanian environment for village energy, local case studies, challenges and opportunities, with a view to formulating policy recommendations for policymakers, funders, NGOs and other stakeholders the region. An important part of the workshop, and indeed the whole Smart Villages initiative work programme, was to gather evidence from existing projects that have provided or facilitated sustainable off-grid energy solutions in the developing world.The workshop gathered more than 50 experts, including policymakers, NGOs, off-grid energy entrepreneurs and others to look for solutions to providing energy to villages off the grid.

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Page 1: Arusha | Jun-14 |  Ewan Bloomfield, Village Level Energy Access in East Africa

Village Level Energy Access

in East Africa

Ewan Bloomfield, International Energy Consultant

Page 2: Arusha | Jun-14 |  Ewan Bloomfield, Village Level Energy Access in East Africa

East Africa

Background

Page 3: Arusha | Jun-14 |  Ewan Bloomfield, Village Level Energy Access in East Africa

East Africa Population

0

10,000,000

20,000,000

30,000,000

40,000,000

50,000,000

60,000,000

Rwanda Uganda Kenya Tanzania

East Africa Population Size

66% 68% 70% 72% 74% 76% 78% 80% 82% 84% 86%

Tanzania

Kenya

Rwanda

Uganda

East Africa Rural Population (%)

Page 4: Arusha | Jun-14 |  Ewan Bloomfield, Village Level Energy Access in East Africa

East Africa General Energy Access

• Over 81% of the East Africa Community’s (EAC) population lives

without access to modern energy services.

• Less than 30% of households use Liquefied Petroleum Gas (LPG) or

an improved cook stove (ICS).

• Less than 40% of urban, 5% of rural, households have access to

electricity.

• Less than 10% of schools, clinics and hospitals in rural areas have

access to grid electricity or a sufficient decentralised energy system to

meet their needs.

• Investments in grid electrification have been far greater than those for

clean cooking, decentralised electrification and mechanical power.

• Given the potential of various energy resources - biomass, solar, micro-

hydro and fossil fuels - greatest need for EAC region is investment.

Page 5: Arusha | Jun-14 |  Ewan Bloomfield, Village Level Energy Access in East Africa

East Africa Energy

Supply Side

Page 6: Arusha | Jun-14 |  Ewan Bloomfield, Village Level Energy Access in East Africa

East Africa Installed Energy Capacity (MW)

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Kenya Tanzania Uganda Rwanda

East Africa Installed Energy Capacity (MW)

Page 7: Arusha | Jun-14 |  Ewan Bloomfield, Village Level Energy Access in East Africa

hydropower 59%

geothermal 39%

cogeneration 2%

wind 0% Kenya Energy Mix

Hydro 58%

Thermal 42%

Tanzania Energy Mix

East African Country’s Energy Mix

Hydroelectric 59%

Thermal 41%

Solar 0%

Rwanda Energy Mix

Hydroelectric 65%

Thermal 32%

Biomass (bagasse)

3%

Uganda Energy Mix

Page 8: Arusha | Jun-14 |  Ewan Bloomfield, Village Level Energy Access in East Africa

East Africa Potential Energy Capacity (MW)

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2000

4000

6000

8000

10000

12000

Kenya Energy Potential (MW)

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1000

1500

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2500

3000

3500

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Hydro Geothermal Biomass Wind Solar Installed

Tanzania Energy Potential (MW)

0

500

1000

1500

2000

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3500

Hydro Geothermal Biomass Solar Installed

Uganda Energy Potential (MW)

0

100

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300

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Hydro Geothermal Biogas Installed

Rwanda Energy Potential (MW)

Page 9: Arusha | Jun-14 |  Ewan Bloomfield, Village Level Energy Access in East Africa

East Africa Fossil Fuel Deposits

• All 4 East African nations (Kenya, Uganda,

Tanzania and Rwanda) share common recent

history - significant energy resources discovered

in last 5 years.

• Kenya and Uganda have discovered large oil

deposits.

• Tanzania has significant natural gas deposits.

• Rwanda’s Lake Kivu has huge methane reserves

that can, and are, being converted into electricity.

Page 10: Arusha | Jun-14 |  Ewan Bloomfield, Village Level Energy Access in East Africa

East Africa

Rural Energy Use

Page 11: Arusha | Jun-14 |  Ewan Bloomfield, Village Level Energy Access in East Africa

East Africa Rural Energy Use

0% 1% 2% 3% 4% 5% 6%

Tanzania

Kenya

Rwanda

Uganda

East Africa Rural Population Using ICS (%)

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Kenya Tanzania Uganda Rwanda

East Africa Rural Population Using Solid Fuels (%)

Page 12: Arusha | Jun-14 |  Ewan Bloomfield, Village Level Energy Access in East Africa

East Africa Electrification Rate Ranking

0 2 4 6 8 10 12 14

Kenya

Tanzania

Uganda

Rwanda

Ranking of Countries in SSA with Lowest Electrification Rates

Country Ranking

Page 13: Arusha | Jun-14 |  Ewan Bloomfield, Village Level Energy Access in East Africa

East Africa Energy Background

• Significant homogeneity of energy issues across the region:

o Arising from broad similarities in socio-economic and cultural, and

economic development levels.

• On-going or initiated regional energy sector reforms leading to:

o Formulation and enactment of energy agencies, authorities, acts

and policies.

o Gradual opening up of energy sector to private sector participation.

• Access to biomass fuels becoming increasingly monetised - resources

being commercialised, with livelihood implications for rural and urban

poor.

• Household access to electricity is largely for lighting purposes only.

• Lower income groups tend to spend larger portions of their household

income on fuel purchasing.

Page 14: Arusha | Jun-14 |  Ewan Bloomfield, Village Level Energy Access in East Africa

• Household income and fuel purchase patterns reflect global

patterns - households tend to move up energy ladder as their

disposable incomes rise.

• Limited research on impact of increased electrification but is an

aspirational commodity.

• Most electrical appliances, including light bulbs, radio, mobile

phone charger, music players and TV are important to rural and

urban residents.

• Evidence gap on potential of existing resources - how they can

be used for micro-industrial, institutional and household uses,

and mechanical power for commercial end-use.

East Africa Energy Background

Page 15: Arusha | Jun-14 |  Ewan Bloomfield, Village Level Energy Access in East Africa

Key Challenges of Rural Energy Access

• Limited awareness and exposure to benefits of energy

technologies - particularly rural East Africans.

• Limited technical capacity particularly in remote areas.

• Often high initial investment costs of technologies.

• Lack of appropriate and affordable financial services for energy

investments.

• Lack of ability to calculate life cycle costs of energy options of

most East Africans.

• Limited political will for rural energy options - also based on

limited knowledge.

• Highly informal nature of most rural areas which energy

programs have tackled to a limited extent.

Page 16: Arusha | Jun-14 |  Ewan Bloomfield, Village Level Energy Access in East Africa

• Rural end-user perception towards ICS not well established included

design, promotion, marketing and quality control of technologies.

• Cost saving arguments, especially with firewood stoves, have not

been effective when rural households don’t pay for firewood -

although now starting to change.

• Profitable business case for ICS producers, and other energy

technologies, not been established - reliance on subsidies and grants

for local producers.

• Cost of providing energy access to some areas is very high due to

their remoteness, dispersed populations and difficult terrains.

• Local communities don’t generate sufficient financial resources to

invest in significant energy infrastructure in many remote areas (e.g.

mini-grids).

Key Challenges of Rural Energy Access

Page 17: Arusha | Jun-14 |  Ewan Bloomfield, Village Level Energy Access in East Africa

East Africa

Energy Policies

Page 18: Arusha | Jun-14 |  Ewan Bloomfield, Village Level Energy Access in East Africa

East Africa Energy Policy Focus

• All 4 East African countries have an entity in charge in Rural

Electrification.

• The policy and legal framework – laws, policies and

regulations - for rural energy in region seem robust.

• However, until recently, government-led focus has been on

large infrastructure and grid sector energy including thermal,

hydro and fossil fuels.

• Donor and CSO-led focus has been more on non-thermal,

biomass and decentralised energy for households.

• Now starting to change.

Page 19: Arusha | Jun-14 |  Ewan Bloomfield, Village Level Energy Access in East Africa

Kenya Energy Policy

• Ministry of Energy and Petroleum responsible - recent name change due to recent

discovery of fossil fuels.

• Kenya Energy Act (2006) caters mainly for grid hydro electricity.

• It provides for the following entities:

o Energy Regulatory Commission (ERC)

o Rural Electrification Authority (REA)

o Rural Electrification Programme Fund (REPF)

o Energy Tribunal

• Act only makes distinction between urban and rural for electrification via the Rural

Electrification Authority (REA).

• REA mandate is promotion of renewable energy sources - small hydro, wind, solar,

biomass, geothermal, hybrid systems and oil fired components and electricity for

irrigation and rural income generating.

• Under Kenya’s Vision 2030 “Zero Kero” programme, aim is replacing kerosene with

alternative fuels such as biogas and liquid biofuels (e.g. bioethanol).

Page 20: Arusha | Jun-14 |  Ewan Bloomfield, Village Level Energy Access in East Africa

Tanzania Energy Policy

• Rural Energy Act of Tanzania (2005) oversees operation and

governance of the Rural Energy Board.

• Rural Energy Agency (REA) focuses on energy strategy

implementation, resource mobilisation, technical assistance and

research and development (R&D).

• Rural Energy Fund manages provision of grants, technical and

financial assistance.

• Together 3 entities responsible for promotion of improved access

to modern energy services in rural areas of Tanzania.

• Act acknowledges - sustainable development achieved when

modern rural energy services are promoted, facilitated and

supported through private and community initiatives and

involvement.

Page 21: Arusha | Jun-14 |  Ewan Bloomfield, Village Level Energy Access in East Africa

Tanzania Energy Rural Energy Strategy

• Role of Government in rural energy service provision - facilitator

of activities, with investments made by private and community

entities.

• Government targeting 30% electricity connectivity by 2015 with

250,000 new customer connections per annum from 2013-17.

• Rural Energy Policy, and the Tanzania Energy Development and

Access Expansion Program (TEDAP) guides rural electrification.

• So far REA has focused on grid extension within rural

electrification.

• Aims to promote rural productive uses including job creation,

stimulation of investment and revenue earnings.

• Access to modern energy is key to rural services - particularly

health, education, security and water sectors.

Page 22: Arusha | Jun-14 |  Ewan Bloomfield, Village Level Energy Access in East Africa

Uganda Energy Policy

• In Uganda energy lies with the Ministry of Energy and Mineral

Development (MEMD).

• National Energy Policy proposes to meet the energy needs of its

population for social and economic development in an

environmentally sustainable manner.

• Policy framework provides Government’s vision - increased and

improved modern energy supply for sustainable economic

development as well as improving the quality of life of Ugandan

population.

• Rural energy overseen by Rural Electrification Agency (REA),

although only focuses on electrification (grid extension, mini-

grids and stand-alone electrification systems).

Page 23: Arusha | Jun-14 |  Ewan Bloomfield, Village Level Energy Access in East Africa

Rwanda Energy Policy

• Ministry of infrastructure (MININFRA) oversees energy

provision in Rwanda.

• Under this sits Energy, Water and Sanitation (EWSA).

• National Energy Policy and Strategy valid for 2008 until

2012.

• Not clear if a new document will be developed for current

period.

• Its biomass energy strategy documents (BEST) are well

established and enacted.

• Current programmes on ICS, biogas, solar PV and mini-

grids.

Page 24: Arusha | Jun-14 |  Ewan Bloomfield, Village Level Energy Access in East Africa

East Africa

Rural Energy Access

Page 25: Arusha | Jun-14 |  Ewan Bloomfield, Village Level Energy Access in East Africa

East Africa Rural Household Energy Use

• Energy stacking is a key feature, particularly for

cooking.

• Energy consumption patterns indicate fuel stacking

more prevalent than fuel switching in rural areas.

• Fuel switching is the main response to increasing

incomes in urban areas.

• Recent uptake of solar PV lanterns and home systems

particularly for mobile phone charging.

Page 26: Arusha | Jun-14 |  Ewan Bloomfield, Village Level Energy Access in East Africa

Kenya Energy Use

• Kenya has a fairly well developed infrastructure, transport and

communication networks compared to other East African countries.

• Wood fuel provides the majority of energy needs of the rural

communities, urban poor, and the informal sector.

• Still heavy dependency on wood fuel and charcoal - accounting for

68% of total energy consumption (petroleum 22%, electricity 9%,

others account for 1%).

• Electricity access in Kenya is low despite the government’s ambitious

target to increase electricity connectivity to >65% by 2022.

• 10,429 electrified trading centres versus 2,706 non-electrified ones.

• 13,135 electrified schools and polytechnics versus 8,195 non-

electrified.

• 8,195 health centres versus 4,543 non-electrified ones.

Page 27: Arusha | Jun-14 |  Ewan Bloomfield, Village Level Energy Access in East Africa

Tanzania Energy Use

• Tanzania’s energy supply still dependant on biomass.

• Since ~90% of population are not connected to

electricity grid, majority of households use wood and

charcoal for cooking.

• As a total, biomass makes up close to 90% of the

total primary energy consumption in Tanzania.

• Leads to deforestation of 100,000 hectares per year,

of which a quarter is reforested.

• Below 5% of the rural population use electricity.

Page 28: Arusha | Jun-14 |  Ewan Bloomfield, Village Level Energy Access in East Africa

Uganda Energy Use

• Energy sector is considered key sector in Uganda’s economy.

• Energy consumption met by several energy resources including

solar, biomass and fossil fuels.

• Biomass most important energy source for 97% of population.

• Provides 90% of total primary energy consumption (firewood,

charcoal and agricultural residues).

• Uganda’s biomass dependence is one of Africa’s highest.

• Electricity contributes only 1% to the national energy balance - oil

products (mainly used for vehicles and thermal power plants)

account for the remaining 9%.

• Due to recent increase in poverty, significant shift back to non-

traded biomass fuels for rural households (from 73% in 1980).

Page 29: Arusha | Jun-14 |  Ewan Bloomfield, Village Level Energy Access in East Africa

Rwanda Energy Use

• Small, landlocked Rwanda is most densely populated country in Africa.

• Although GDP has been growing rapidly (currently $1,300 per capita) it still ranks

amongst the poorest countries in world.

• Approximately 85% of overall primary energy consumption based on biomass.

• 99% of all households use biomass for cooking – but virtually all charcoal

produced from planted trees, on private as well as community land so limited

deforestation impact.

• Ambitious government programme to achieve electrification of 16% by 2012 and

60% by 2020 - more than 67% of population live within 5 km of existing electricity

networks.

• Community service electricity connections:

o 21% of schools

o 74% of health centres

o 67% of administrative offices

Page 30: Arusha | Jun-14 |  Ewan Bloomfield, Village Level Energy Access in East Africa

East Africa

Rural Energy

Conclusions and

Recommendations

Page 31: Arusha | Jun-14 |  Ewan Bloomfield, Village Level Energy Access in East Africa

Rural Energy Conclusions

• Generally still very low electrification rates in rural areas.

• Current very high rates of biomass dependency - need

increased effort on efficient and sustainable biomass

technologies.

• Solar PV technologies have great potential and sector

needs further support including larger systems and for

productive use (e.g. agricultural irrigation).

• Mini-grids have been piloted successfully but models need

to be developed to take them to scale.

• Mechanical power and productive use of energy - still very

underserved and needs greater focus and investment.

Page 32: Arusha | Jun-14 |  Ewan Bloomfield, Village Level Energy Access in East Africa

Rural Energy Recommendations

• East Africa energy policies need to increase focus on rural

energy supply - including targets for range of energy

markets - solar PV, ICS, mini-grids and mechanical power

services – capacity building programmes.

• Lessons needs to be learned and shared within the region

on a range of technologies and approaches:

• Solar PV lantern and SHS programmes (Kenya).

• ICS technologies and sustainable biomass supply

(Uganda and Rwanda).

• Mini-grids (Tanzania).

• Innovative distribution, marketing and finance models.