Showing posts with label rural electrification. Show all posts
Showing posts with label rural electrification. Show all posts

Saturday, December 1, 2018

Energy Access and Poverty in Latin America, 2018

Ecofogon Stove Used in Small Business in Nicaragua
Recently I helped complete a new report on energy access in Latin American the the Caribbean area. The title of the report is Meeting Challenges, Progress: The Benefits of Sustainable Energy Access in Latin America and the Carribean. Making This new report was produced by a joint effort between the Inter-American Development Bank and the United Natoins Development Programme.

Energy access is an essential prerequisite for economic, social, and human development. The 2015 United Nations Sustainable Development Goals (SDGs) explicitly recognized affordable and clean energy as a key factor in development, alongside education and poverty alleviation. The UN Sustainable Energy for All initiative (SEforALL) mobilizes international donors, countries, and the private sector to help people in developing countries gain access to modern energy services.

To assist in support of sustainable energy for all goals, I was recently involved in producing this joint study of the Inter-American Development Bank (IDB) and the United Nations Development Programme (UNDP). it provides a comprehensive review of energy poverty policies and programs in Latin America and the Caribbean. This report measures the progress and impact of energy-access programs and also documents the experience of successful projects. This study reviews cutting-edge methodologies to assist in program design, shares of experiences of successful programs and develops a vision for reaching sustainable energy for all in the LAC region.

With electricity coverage at more than 96 percent, Latin America and the Caribbean (LAC) is close to becoming the world’s first developing region to achieve universal access to electricity. Despite recent progress, within LAC there are still substantial pockets of energy poverty. Approximately 21.8 million people are without electricity access. More than 80 million people rely on firewood and charcoal for cooking that is burned in fuel-inefficient, primitive stoves. These traditional cooking technologies emit a significant amount of indoor air pollution (IAP), which has been linked to respiratory illnesses and adverse environmental impacts. Thus, in addition to promoting electricity, energy access programs also might give priority to the promotion of cleaner methods cooking by making available better stoves and cleaner burning fuels at reasonable costs.

The report also explores ways to measure energy poverty and monitor energy access in developing countries. The accuracy and effectiveness of tools such as the IEA’s household energy data efforts and the Global Tracking Framework depend on collecting information through standardized national surveys. Approaches to measuring energy poverty and monitor energy access have increasingly focused on the provision of energy services such as lighting, space conditioning and cooking.

The transition from low-quality energy services to more modern forms can be accomplished in different ways. As households in developing countries adopt electricity and clean methods of cooking, they benefit from higher quality, lower cost and convenient to use appliances. However, measuring the societal and developmental benefits of energy investments--though difficult--is important.

Two basic approaches have evolved over the years to measure the benefits of energy access: (i) consumer surplus and (ii) regression-based techniques. The consumer surplus approach evaluates the economic benefits of energy services by measuring increased demand resulting from lower costs of such energy end uses such as lighting, radio and television. When possible, rigorous impact evaluation techniques based on multivariate models can be used to more directly measure the socioeconomic benefits associated with energy access and modern energy services including higher income and improved education.

In recent years, new approaches for meeting the requirements of modern and sustainable energy services have emerged. Due to technical and market changes, new types of equipment have become available for providing energy services to rural areas. In LAC, three basic models have been developed to provide rural populations with electricity service: (i) main grid extension, (ii) community networks, and (iii) individual home-based systems (including clean cookstoves).

The level of investments necessary to achieve the 2030 SDG target for expanded electricity access for all will be quite high. Reaching the universal access goal will require developing innovative partnerships between the public and private sectors. All three models benefit from favorable institutional and policy conditions, including funding mechanisms like subsidies and small-scale finance. In addition, various kinds of specialized energy funds have been developed to promote energy access. The new focus on remote areas may require some rethinking of the institutions and subsidies necessary to promote decentralized electrification programs.

A multifaceted approach to solving rural energy problems is essential for bringing remote or underserved populations into the twenty-first century. New electricity technologies and innovative business models are emerging to deal with the poorest and most remote populations in LAC. Such innovation needs to expand to include more initiatives for better cooking fuels and clean-burning, fuel-efficient biomass stoves. Proper impact evaluation of energy access interventions is needed to justify program subsidies and to better target such programs to poor and remote populations.

Over the past two decades, the LAC region has made remarkable progress toward providing sustainable, modern energy for all. Going forward, the challenge is to provide electricity and clean cooking solutions to the region’s most remote, vulnerable and poorest populations.

Tuesday, February 10, 2015

The Household Benefits of Lighting with Electricity: Consumer Surplus Explained


Figure 1. Consumer Surplus for Lighting
(Graphic: Doug Barnes)
By Doug Barnes

The concept of consumer surplus in measuring the benefits of rural electrification continues to be misunderstood by many people. In this posting, I try to address some of those misperceptions. The main point is that consumer surplus is really a shortcut way to measure social and economic benefits. People purchase kerosene to use in lamps, and then in turn use the light from those lamps for various activities they want to do. Likewise, households purchase electricity to produce light, and this permits an even wider variety of evening activities in the households. People know that electric lights over the short and long term might result in increased education, improved productivity, better ability to host social gatherings and other benefits.

The slightly modified quote below is from Chapter 9 of Electric Power for Rural Growth, and it discusses the evolution of the way benefits of rural electrification have been measured over the years.

Thursday, January 8, 2015

Rural Electricity Adoption in India: What's Standing in the Way?


By Doug Barnes

For several years I have been involved in a project to understand why the electricity connection rates in India are not higher than they are. This resulted in a report probing various reason that are holding back India for achieving universal access, despite spending quite a bit of money on the problem. For details, see the report Power for All: Electricity Access Challenge in India. I have done quite a bit of work on India, including a some older major studies on Energy Strategies for Rural India (2002)  and The Impact of Energy on Women's Lives (2004). This new report complements the past work.

First some facts. Owing mainly to its large population, India still has by far the world’s largest number of households without electricity. About 311 million people still live without electricity, and they mostly reside in poor rural areas. By late 2012, the national electricity grid had reached 92 percent of India’s rural villages, about 880 million people. And 200 hundred million households in India live in villages with electricity, but they have not adopted service.

So what does this say about energy access? For me, given the significant benefits of rural electrification, with so many without electricity living in villages with grid service means that something is standing in the way of electricity adoption in India. For India it is necessary to understand the concepts involved in both village and household electrification. The electricity access rate is the percent of all households in India with electricity. The electricity availability rate is the percent of household living in communities with service, regardless of whether or not they have adopted electricity. Finally, the electricity hook-up rate is defined as the percent of households that have adopted electricity in communities that have service.

Monday, December 8, 2014

Electric Power for Rural Growth, 2nd Edition.

http://www.amazon.com/Electric-Power-Rural-Growth-Electricity/dp/0692303464/ref=sr_1_1?ie=UTF8&qid=1417918870&sr=8-1&keywords=electric+power+rural+growth
Click Image
for Amazon "Look Inside"


I recently published a new book on the impact of rural electrification in developing countries. Actually it is a revision of an old book. This is the second edition of my first book Electric Power for Rural Growth, published in 1988 based on research during my first job at Resources for the Future. At the time, international donors were having serious doubt about the benefits of rural electrification for developing countries.

To see a description of the book on this site, click on this link.

This entirely new production of the original book offers important historical information on the state of rural electrification in the 1980s. I have updated the text and titles, and the tables and charts have been revised for clarity. Some material that is no longer relevant has been omitted. I also have added a new chapter that summarizes the development of benefit evaluation methods, along with findings from recent research on the impact of rural electrification for development.

Overall, the issues identified in the 1980s remain extremely relevant today in the context of the new international emphasis on providing modern energy access for all. This includes its social impact and the productive use of electricity for agriculture and small business development. The main countries covered include India, Indonesia and Colombia. Many of the lessons learned from this study have been lost, especially with today's emphasis of providing electricity to those remaining people without service. Although this is a very important, the complementary conditions for rural electrification also should not be forgotten in the rush to provide "electricity for all."

Since the original writing of this book, the development impact of grid electricity on rural households has been the subject of a significant amount of research. I am glad to report that the findings of this early study have been validated for the most part.

Further research still is necessary on subjects like the impact of solar home systems or small lighting systems on socioeconomic development. It is well-known that certain activities cannot be accomplished by relying on the low power levels available through solar home or smaller photovoltaic systems. The question is whether this matters or should such technologies be considered “pre-electrification”—important in their own right but awaiting further expansion of grid electricity systems. These important new questions can only be answered by new research.

In the meantime, I offer this second edition of my impact study of rural electrification. The purposes of this book are to inform the issues in the public policy debate, advance empirical knowledge about the major issues and reach conclusions on the efficacy of various ways to implement rural electrification for development. In the context of new initiatives to promote the expansion of both grid and offgrid electrification, this study with its emphasis on the importance of complementary conditions is probably more important today even than it was over 20 years ago.

Sunday, November 2, 2014

Two Billion People Gain Electricity Access: 1970-2010

By Doug Barnes

Rural Energy
and Development,
Published 1996
In 1996 I wrote "It is hard not to be daunted by the scale of providing energy services to the world's rural population. There are nearly two billion people without access to modern forms of energy such as electricity or oil. This book describes the plight of these two billion. Its message, however, is that there are now many ways in which their situation can be improved. For though the problem is daunting, practicable and affordable prescriptions are available." This was from the book Rural Energy and Development: Improving Energy Supplies for Two Billion People (World Bank, Washington DC). Click on the text for a scanned copy of the book. Unfortunately, this is the only free downloadable form, but it still can be purchase on commercial sites. 

At the time, no one was counting the number of people who were without electricity. My World Bank Director during that period was Richard Stern. He was very supportive of this new line of work on rural and household energy.  During those times when most people didn't give a thought to rural energy in international organizations, as the director of energy at the World Bank he took a risk that this long ignored issue would take on future importance. Only time would prove him right.

During one of our pre-publication meetings, he turned to me and asked, "How confident are you of the number two billion. It's in the title of the book, so it better be right." I squirmed a bit in my seat, knowing all the potential flaws in the numbers we had researched. However, at that time no one had taken the effort to calculate the number of people without electricity. The team that I worked with had been fairly meticulous in looking at those with and without electricity country by country.  As a result, I looked at him and confidently said, "No one has any better numbers than us." He still did not look convinced, but accepted our judgment. Later we would turn these numbers over to the International Energy Agency, which now keeps track of those rural electrification rates in developing countries.
Table 1 Rural Electrification in Developing Countries,
1970-2010
Source: Barnes, Electric Power for Rural Growth,
Second Edition, 2014 

As one of the first people to count the number of people without electricity, I recently took a look at some figures in my book Electric Power for Rural Growth published in the 1980s. The Second Edition of this book has now been published. I found that in 1970, the rural electrification rate in developing countries was only 12 percent, compared to more than 60 percent today (Table 1). 
Today, projecting backward from recent trends, I found some interesting results. In 1970 there were only about 2 billion rural people in developing countries, so about 1.75 billion people were without electricity. I estimate that during the 1970s and 1980s due to population growth and few international efforts involving rural electrification programs, the number of people without electricity kept growing to well over 2 billion. The incremental number of people with electricity was not even keeping up with population growth. 
During the late 1980s and the early 1990s, the number of people without electricity in developing countries finally started going down (due to significant programs in China, India, Thailand and other countries). People without electricity declined to about 2 billion people in the early 1990s. Today the number of people without electricity has declined further to 1.3 billion. Significant progress has been made in the last 40 years.

In the 1990s there were 2 billion people without electricity, and in 2010 the number was 1.3 billion. But this does not mean that only 0.7 billion new households have been provided with electricity between 1970 and 2010, because during those times populations grew at about 2% per year. Thus, during the last 30 years over 2 billion people have gained access to electricity. Countries like China, Thailand, Brazil and Mexico now have electricity access rates that are well over 95 percent, and they are working on the last remaining pockets of people without electricity.

Obviously the task is not complete. Even a large country like India still has more than 200 million people without electricity, and in rural Africa, astoundingly, only 1 in 8 people in rural areas has electricity. So complacency is not the order of the day, and actions are still needed to bring a modern life to those living in extreme poverty or very remote areas. This is still true even 30 years after the publication of the forward looking policy book Rural Energy and Development.

Thursday, December 12, 2013

What Drives Electricity Adoption? A Review of Connection Charges in Sub-Saharan Africa

By Doug Barnes
Household Electricity Meter
Picture Credit: Douglas Barnes

Today many development agencies focus on the price and physical presence of access to electricity as being the main issue for lack of electricity in developing countries.  They may want to alter their thinking.  This is not to say that physical access and the price of electricity are not important, for clearly they are very important.  But a new study on Electricity Adoption and Connection Charges in Sub-Saharan Africa finds that an equally important factor may be electricity connection charges for new consumers.  Africa is the region with the lowest electricity access rates in the world (only 1 in 8 rural households and 1 of 2 urban households have electricity) and also is the region with the highest initial service connection charges.  One question not explored in this paper is the extent to which high connection charges are an indirect way for power companies to confine service to more profitable high income electricity users and to avoid political pressure to extend electricity to poor, low electricity using households. 

For electricity companies, expanding electricity to all makes quite a bit of sense for long term business development.  Electricity would contribute to economic development, and then more people could afford electricity.  As incomes grow even poorer people would buy more appliances and increase their electricity use, making them more financially attractive for electricity companies.  Thus, in the long term policies to expand electricity service make both solid financial and economic sense.

Monday, June 10, 2013

Energy Poverty and Income Poverty: How Do They Differ?


by Doug Barnes, Shahid Khandker and Hussain Samad

There is a continuing discussion over what constitutes energy poverty with several approaches being used to define it.  But as yet, no consensus has emerged for measuring and monitoring energy poverty and explaining why and how it differs from income poverty.  After all, income poverty is a standard measure, so if the two are highly related it would not be worth the effort to develop a unique measure for energy poverty.  In other words, why create a separate indicator of energy poverty because in the end it would just be a reflection of income poverty.  Everyone seems to know about energy poverty,but truly defining and measuring it gets a bit complicated. 
About 10 years ago energy poverty was thought to be related mainly to lack of access to electricity.  More recently the United Nations and Department of International Development of Great Britain (DFID) have broadened definitions of energy poverty to multiple indicators using somewhat arbitrary weights.  International Energy Agency (IEA) has never actually defined energy poverty (except that it is related to lack of access to modern energy), but advocated that better ways of using biomass energy for cooking should be an important policy for household energy.  Also, most international organizations measure energy poverty indicators as outputs (e.g., lack of electricity connections) rather than outcomes (e.g., welfare gains from electricity consumption).  Thus, unlike income poverty—which is usually based on minimum consumption of food and non-food items necessary to sustain a livelihood—energy poverty lacks a well-established theory based on energy demand to establish a relevant poverty line. 
In several recent papers the authors of this post have taken a different approach, focusing on energy demand in order to define energy poverty.  Like income poverty, energy poverty may be defined by the minimum energy consumption needed to sustain lives.  This approach defines an energy poverty line as a threshold of energy consumption needed to sustain life.  Similar to the concept of income poverty, we reasoned that there had to be a point at which energy is essential for living.  After all, people have to cook their food; in cold climates they must heat their homes; and they generally need a minimum level of light in the evening for basic tasks (sometimes including eating).  In theory this is all well and good, but the question remained how to measure that threshold. 
Figure 1:  Energy End Use Energy Consumption by Income Class,
Bangladesh and India
Therefore, we tested this demand approach using rich household survey data sets from Bangladesh and India.  We found that although energy consumption rises with income, this increase is not uniform (Figure 1).  This is because energy consumption at lower income groups turned out to be somewhat flat--in economist's terms it is income inelastic (does not rise with income).  After those minimum levels, energy consumption increased for households with ever higher incomes--once again in economist's terms, income elastic (does increase with income).  The theory is that for those levels where the energy income relationship is inelastic, this is the minimum level of energy necessary to maintain a healthy life.  This is the basic level of cooking, heating, lighting or other energy service needed to sustain life. 

Monday, April 22, 2013

Resurrection of ESMAP Knolwedge Exchange Series 2005-2009


Between 2005 and 2009 I was the technical editor of an ESMAP Knowledge Exchange Series that involved the publication of four page summaries of current energy issues.   When I recently reviewed these notes after four years, I was struck by both the quality of these four page notes and the continuing relevance of the issues covered.  Also, most of the authors of these notes have 20 to 30 years of experience of working on energy in developing countries issues.   Because they are no longer very prominent on the ESMAP website, buried beneath more recent work, I have decided to resurrect them in this blog

I am sorry for the long delay between posts.  Both an illness and work somehow got in the way of working on this blog.  I have decided to revive it, but will not post as often as before.  But continue to check back as there will be more to come. 

Retroactively I have grouped these Knowledge Exchange Notes into four groups.  The first is on grid and offgrid rural electrification programs.  The second is on electricity generated mainly for the electricity grid.  The third group is biomass energy both for cooking and transport.  Finally, there are two notes on how rising energy prices impact the poor. 

Tuesday, January 25, 2011

Energy Services for the Poor: A Review of World Bank Lending

By Doug Barnes

A couple of years ago I completed this review of Modernizing Energy Services for the Poor:  A World Bank Investment Review 2000-2008.  This was followed by extensive reviews and then revisions.  And this was followed by new revisions and fresh reviews and so on and so forth.  I am happy to announce that this report is finally out and comments are welcome, but no more reviews please. 

Source: World Bank Investments in Energy Access: 2000-08(Figures are Millions)

It may seem like a trivial exercise to classify energy access lending, but nothing could be further from the truth.  When you think about it almost all energy investments can be considered as promoting or being related to energy access.  Energy sector reform makes it possible to have a well functioning energy markets, and this is turn means the electricity and other forms of energy can reach the poor.  Likewise, rural electrification would not be possible without generation and transmission projects.  So where do you draw the line for ruling in investments as relating to energy access energy poverty or ruling them out. 


Thursday, December 9, 2010

Much Ado About Energy Poverty: A Look Behind the IEA Numbers

By Doug Barnes

The International Energy Association (IEA) has published a very nice special paper with the title Energy Poverty: How to Make Energy Access Universal.  This report makes a substantial contribution to the work on energy poverty and provides the updated figures on electricity access and the use of fuels for cooking.  The purpose of the report is to raise the issue of energy poverty to a higher level of international visibility.  This is quite a welcome tact by an energy agency that for many years has specialized in addressing issues of modern energy. 


I really like several things about this new report.  For one, the energy access and cooking fuel issues are well documented and nicely presented in tables and figures.  They also have made this publication free as supplement to the World Energy Outlook.  However, if you want the more country specific details you must purchase World Energy Outlook.  Finally, IEA has now added cooking fuels to the other types of energy they track to compliment their emphasis on electricity and other modern fuels.  This will raise cooking fuels to a higher level of public awareness and tracking their use is a very good idea for policy makers in the field of energy. 

The report also has some very high figures for the investment costs necessary to reach universal modern energy access by 2030.  At first glance, I thought these figures were too high, so I decided to “look behind” the figures.  I can tell you that that even for someone as seasoned as me this was not an easy task. 

Sunday, September 26, 2010

Impact of Rural Electrification in Peru: A "New" Study

By Doug  Barnes
 
A “new” report on rural electrification in Peru demonstrates the usefulness of conducting energy surveys to help with assessing policies for such programs.  The usefulness stems from the ability to not only estimate the benefits of rural electrification, but to analyze if the subsidy policies are both effective and well targeted. There are many ways to structure subsidies for rural electrification in developing countries (see previous blog on energy subsidies).  Some types of subsidies can be progressive and others well could be regressive.   Assessing the appropriativeness type of subsidy generally is difficult to do without energy survey information.  
Rural Energy Expenditures by Income Class in Peru
in Soles per Month (1 US$  = 3 Soles) 
Source: Peru National Survey of Rural Energy Use

In developing countries generally people with higher income spend more cash income on energy than those with lower levels of income.  This same pattern can be found in Peru as indicated by the figure.  It is somewhat expected that electricity and LPG expenditures in rural Peru increase significantly with increases in income as measured by total expenditures.  But interestingly even cash expenditures on fuelwood rise with income which indicates that there is even a willingness to pay for what is probably high quality fuelwood. One reason that it is necessary to have quality surveys is to track both the effectiveness and the targeting of subsidies.


Wednesday, July 7, 2010

What is Rural Electrification: New Technologies and Old Definitions?


What is rural electrification? This definitioin appears simple but it is becoming more and more complicated as new devices and systems are developed that provide various levels of electricity service.

Grid Rural Electrification,Vietnam: Photo WB Hanoi
With the exception of flashlights, historically the main source of electricity has come from national or local grid systems.  National grid systems are fairly well know.  Local or isolated grid systems are generally based on either microhydro or diesel generators, and the distribution system does not extend beyond a local area such as a town or group of towns.   Then along came the first generation of household offgrid technologies such as solar home systems that were developed and marketed to consumers.  These systems involve photovoltaic panel or panels coupled with a battery for a single home.  Recently this has been followed by new small household lighting systems. Often unrecongnized, for many years rural people have used car or motorcycle batteries for basic television and household lighting. Today there are even some new developments such as thermo-electric devices that can turn heat into small amounts of electricity when attached to household cooking stoves.  These technologies are still in the early stages of marketing and development.

Amid this wide variety of new systems and devices, the cost and level of service is quite different among these various types of systems . As you move from those that already have grid service to offgrid technologies, the cost increases per kilowatt hour and the service decreases.  Of course the most desirable electricity service is from the grid, but there are well known constraints to extending grid electricity to remote areas in developing countries. The constraints include high costs involved in reaching remote areas and lack of local capacity to use much electricity.  In such situations offgrid technologies often are less expensive than the grid in remote areas or for specialized uses. For those that are not so familiar with the hierarchy of these technologies, I will provide a brief description of typical service levels and the main benefits that can be supported by them (see table below the break).

Monday, June 28, 2010

Energy Poverty Continued: A Narrative from Andrew Barnett

I have received a rather long comment from Andrew Barnett from The Policy Practice and I thought it would be good to include his insights on energy poverty as a main post. The slightly revised text below is from Andrew Barnett.

=========

A Narrative on Energy Poverty by Andrew Barnett
Fuel Collection Bangalore, India Photo by D. Barnes
A new generation of people has recently become interested in “Energy Access” and I am frequently asked what did we learn over the past 30 years. What follows is my attempt to put together a “simple narrative” about what we know about energy poverty.

It is probably useful to start by making the distinction between primary energy, energy conversion technology, and the idea of “useful energy” or (better) modern energy services. So the issue is how to enable poor people to gain greater use of the services made possible by modern energy. This is the crucial insight that enables “decision makers” to see the problems involved. Namely, the problems involve an increase in the supply of modern energy forms and great access to and utilization of energy conversion technology. This leads on to to issues of energy conversion efficiency, and the ability of people to pay for the services. It has been said for a long time that poor people do not lack access to energy (they are sweltering in the heat from the sun and many have biomass all around them). What they lack is the means to make it useful to them. This usually involves the expenditure of capital on equipment to turn biomass and the sun’s energy into energy that is useful for them. Energy poverty no doubt results from money poverty and is largely about the inability to pay for modern energy services. Focusing on energy use at the outset focuses attention on the demand side of the problem.

Continue below....

Sunday, May 30, 2010

Small Photovoltaic Lighting Systems: Niche or Not

The small technologies such as solar lanterns and small lights have always been a challenge to promote under development programs.
Solar Lantern in India
The wind up radio, which is now in the mainstream market for developed countries, was originally introduced as a possibility to improve communication in developing countries. Except for emergency situations such as Haiti, it is not a staple product for international donor programs because such products are now readily available in the marketplace, sold through large chains, retail stores and shops at retail prices.

The question is will small photovoltaic lighting systems have a similar fate? In part to answer this question there is a recent report that has been published by GTZ with the long title, What difference can a PicoPV system make? Early findings on small Photovoltaic systems - an emerging low cost energy technology for developing countries.  Here is the link. That must be a literal German translation of the title, but my preference given the content of the report would be something like The Role of Micro-Photovoltaic Lighting Systems in Developing Countries. But admittedly that is more boring.

Wednesday, May 19, 2010

Rural Energy Subsidies: “It's Déjà Vu All Over Again”

By Doug Barnes

I have noticed that there has been quite a bit of material circulating recently on energy access and subsidies.  The World Bank has prepared
Cooking with Ecofogon Stove, Nicaragua
Photo: PROLEÑA/Nicaragua
a background paper that will be published soon, and it is quite good. However, in reading this paper and other related material, I almost felt I had read it before—a kind of déjà vu.  So in this period when everybody is asking "Where is my bailout?" it seems a good time to review the justifications and implementation challenges for energy subsidies.

Jonathan Halpern and I had written both a paper and a short note on this subject about 10 years ago at a time when there were strong anti-subsidy sentiments in many development agencies. This blog contains a summary of that paper on energy subsidies published in 2000. So go to the original paper and read it, or read on. Or read on and then go to the paper! This work hopefully has withstood the test of time, but you can be the judge.

Why should we examine the role of energy subsidies for access to energy?  The answer seems obvious.  Energy policies that have the purpose of alleviating poverty must in some way bring down the costs of safe, clean, reliable energy services to make them more affordable. Low-income households often lack access to or cannot afford the initial costs of “modern” energy services. A good subsidy scheme is one that enhances access for the poor while sustaining incentives for efficient delivery of energy services without significant distortions in energy markets. But that is not all: the subsidy scheme must also be within the financial and human resource constraints of the government. This is quite a balancing act.


Much more below the break....

Wednesday, May 12, 2010

Solving Rural Electrification Problems: New Wine in Old Bottles?

Strong institutions, favorable financing, clear service territories, encouraging productive uses, reducing drudgery for women, and local involvement.  Do these all sound like familiar prescriptions for successful rural electrification?

Rural Electrification Administration Advertisement
Source: NRECA
In fact they encompass some of the eight steps to successful rural electrification highlighted in a previous blog. Recently I was doing a bit of research on the United States Rural Electrification Administration (REA) and I came across some interesting quotes that illustrate many of these points—some from the 1930s no less.

Before plunging into the quotes, some salient facts for those that do not live in the US—or for those living in urban areas in the US! The United States beginning in the 1930s began implementing a new rural electrification program as part of Roosevelt’s New Deal that was based on a newly created government agency called the Rural Electrification Administration. This government agency was created not to carry out rural electrification projects, but to support their implementation through electricity distribution companies called rural electric cooperatives. These cooperatives were and still are private, independent electric utilities anchored firmly in the communities that they serve. Today there are more than 900 electric cooperatives in the United States providing reliable electricity service to 42 million Americans while maintaining a unique consumer-focused approach to business. For more facts see US Utility Fact Sheet published by the National Rural Electric Cooperative Association.

With this background, it is now time for the quotes which have been paraphrased to provide a better context for understanding them.  

See much more below the break....

Friday, April 30, 2010

Rural Electrification in Developing Countries by the Numbers

Rural Electrification Lineman Bangladesh
Photo by WB Dhaka
The rural electrification figures in developing countries are pretty well known by now. There are now an estimated 1.5 billion people without electricity in developing countries, and 85 percent of them live in rural areas. However, I am going to give a brief history of the context in which these numbers were compiled. So this post will discuss rural electrification numbers with a twist.


In the early 1990s, several ESMAP energy staff including me were asked to complete a rural energy strategy for the World Bank. One the first things we were asked to do was to find out how many people in the world were without electricity and cooked with biomass fuels. Believe it or not this had never been done in a comprehensive way. This was before the age of instant access to facts and figures over the internet, so it was not an easy task. For the electricity figures we looked at surveys, examined power company annual reports, consulted with those involved in rural electrification projects, and contacted statistical departments in country governments. After well over a year of compiling the data we presented them to our very supportive managers. I remember them saying, “These figures better be right!” Knowing the uneven quality of the sources we were nervously confident. The document was published in 1996 with the title Rural Energy and Development: Improving Energy Supplies for Two Billion People. Yes the answer for data mostly from the early to mid-1990s was two billion people without electricity and coincidentally just over two billion people dependent on biomass fuels.

These figures were widely quoted at the time, but they were not updated annually. Around 2000 the energy group decided that it was time for an update of these figures. I was not directly involved with this effort, but was asked to review the numbers as they collected the information. A new set of figures were published informally in 2002 with the new level of 1.7 billion people without electricity, and most of the progress that had been made during the previous decade was in China. After taking population growth into account this meant that over the previous decade about 1 billion people had gained access to electricity.

Much more below the break.....

Thursday, April 8, 2010

Facing Rural Energy Realities in Bangladesh

Adult Literacy Class, Bangladesh by Shehzad Noorani
People often forget that once Bangladesh was close to being the poorest country on the planet. Things certainly have changed in recent years. Bangladesh has always had policies for open trade that have helped the country become an exporter of manufactured goods, much of which has resulted from allowing investments by multinational firms.  Generally economic growth has been very positive in recent years.

The country also has a very ambitious and successful grid rural electrification program that was modeled after the USA rural electric cooperatives which is considered a “best practice.” Even for those rural households distant from the electricity grid, since 2002 there has been a very successful rural energy fund that is administered by a government bank. This fund along with prominent non-governmental organizations such as Grameen Shakti (part of Grameen Bank) and BRAC have been very active in promoting solar household systems for basic electric lighting and communications services for those out of reach from the grid electricity system. In recent years they also have been expanding to other rural energy technologies such as biogas and improved cookstoves.

Much more below....

Sunday, April 4, 2010

Rural Electrification and Communication

Vietnam Rural Television Viewing: Photo by WB Hanoi
Today most of us take electronic communications for granted. We are tethered to our emails, televisions, and computers.  Facebook, Twitter, sports and entertainment all are made possible by a combination of electricity and technology. Does this improve our productivity?  The answer is a resounding yes. Does it also make life more complicated? You bet. In fact, sometimes we feel that the world is getting too interconnected. This raises the question about how to value the electronic communication benefits of modern communications, and it is not an easy issue to tackle.

For the 1.6 billion people in this world who do not have access to electricity their electronic communication needs are more basic. People without grid or off the grid electricity often rely on battery powered radios for their communication devices. For people that adopt electricity for the first time, after household lighting the next most commonly purchased electronic device often is a television or a fan. Therefore in this blog, I am going to concentrate on televisions use and their implications for households with and without electricity.

For more on this issue continue below.....

Saturday, March 13, 2010

Eight Steps to Successful Rural Electrification Programs

The pace of rural electrification over much of the developing world has been painfully slow, especially in South Asia and Africa. Rural electrification programs can undoubtedly face major obstacles. The low population densities in rural areas result in high capital and operating costs for electricity companies. Consumers are often poor and their electricity consumption low.  This post is on grid rural electrification and there will be a similar future post on offgrid rural electrification.
The Challenge of Rural Electrification:  D. Barnes

Yet in spite of these problems, many countries have been quietly and successfully providing electricity to rural areas. In Thailand, well over 90 percent of rural people have a supply. In Costa Rica, cooperatives and the government power utility provide electricity to nearly 100% percent of the rural population. In Tunisia, over 90% percent of rural households already have a supply. In studying countries like these and others there appear to be 8 steps to achieving successful rural electrification. These steps are taken from my book called The Challenge of Rural Electrification: Strategies for Developing Countries. that examined 10 successful programs from around the world including the developed countries of the United States and Ireland. I know that it appears these programs are in middle to high income countries, but many were low income when they initiated their programs. 

To read more click below to continue.