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14. December 2010, Lars Kåre Grimsby Diversification of energy use and energy security

14. December 2010, Lars Kåre Grimsby Diversification of energy use and energy security

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14. December 2010, Lars Kåre Grimsby

Diversification of energy use and energy security

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Energy related crises in developing countries from 70-ties until now – why aren’t people adopting modern energy services?

The fuelwood crisis

Indoor air pollution

Fuelwood and gender

Deforestation and climate change

’Energy poverty’ (MDGs)

= Intervention: improved stoves, modern energy services

=> Lack of adoption is interpreted as due to “transition constraints”

Raju, S. (1954). Smokeless kitchens for the millionsEckholm, E. P. (1975). The other energy crises: firewoodLeach, G. (1992). The Energy TransitionModi, V., S. McDade, et al. (2006). Energy and the Millennium Development Goals

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Multiple fuel use a transition constraint

‘Urban households generally move up the energy ladder as socio-economic conditions improve’

Both wealthy and poor households in rural areas diversify energy use rather than moving up the ladder

Constraint to the energy ladder theory

=> Multiple fuel use may be a risk minimization strategy

Smith, K. R., M. G. Apte, et al. (1994). Air-pollution and the energy ladder in Asian citiesMasera, O. R., B. D. Saatkamp, et al. (2000). From linear fuel switching to multiple cooking strategies: A critique and alternative to the energy ladder model

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Multiple fuel use at household level a strategy for energy security according to IEA

‘Use of multiple fuels improves energy security, since complete dependence on a single fuel or technology leaves households vulnerable’

=> Diversification of energy use in households considered a rational strategy for securing energy supply

OECD/IEA (2010). Energy Poverty: How to make modern energy access universal?

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Energy security and rural livelihood diversification

Energy security - ‘the uninterrupted physical availability at a price which is affordable, while respecting environment concerns’ through ‘promoting diversity, efficiency and flexibility’

’… increasingly diverse portfolio of activities and assets in order to survive and to improve their standard of living’

IEA webpage: www.iea.orgEllis, F. (2000). Rural livelihoods and diversity in developing countries

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Study household energy use in Siha district, Tanzania

Productive rural area

Diverse livelihood activities

Developed infrastructure (roads, grid, fossil fuels)

Much dissemination of energy related information by organisations

Look at diversification of energy use

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What’s cooking in a household - example

The preferred fuel is firewood. Use it in the improved stove. Reduce consumption during rainy season since costs increase

After harvest use maize cobs for some weeks to reduce costs. Use the three stones since improved stove can not take this fuel

During rainy season, heat the home with charcoal stove. Also use charcoal stove for preparing hard food some times

Generally use a kerosene stove for preparing hot water in the morning since it is fast

Sometimes use the sawdust stove for preparing long simmering food. Sawdust is free, but you need a special stove

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Diversifying energy use for energy security

Availability of energy carriers vary, for example with season. Diversification increases flexibility

A diverse set of technology and energy carriers can allow reduction of costs

Different energy carriers and technologies are suitable for different purposes

A diverse set of energy carriers and technologies can function as back-up

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The importance of light – an example

Households connected to grid also have solar panels

In the rainy season, solar panels are weak and there are power cuts

Switch to kerosene lamps, but that is expensive

Use koroboi in kitchen because it is too dirty for light bulbs and kerosene lamps

Flashlights are used when power cuts and to see to the animals

Flash light on cell phone is used when out walking after dark

Candles are kept as backup

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More theoretical arguments for the rationality behind diversification of energy use

A diverse energy portfolio can increase both technical and allocative efficiency of energy use in the household. More rational use of resources

Partial integration in the energy market can reduce vulnerability to shock and perturbations since the household can withdraw to use local resources outside the market

Operating in markets across scales (local to international) can also reduce vulnerability. The household can switch energy following cost and availabilityEllis, F. (1993). Peasant economics: farm households and agrarian developoment

“Efficient but poor” - Schultz, T. W. (1964). Transforming traditional agriculture

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How about storage to improve energy security?

Diversification of energy use

– Common across various household-categories (livelihood strategy, wealth, educational level)

Storage of energy carrier to reduce vulnerability

– Few households store firewood for the rainy season

– Limited storage of kerosene and batteries for stoves and flash lights

=> Storage as a strategy for improving energy security not that common. Need not felt?

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New technology, new energy security?

Willingness to pay for energy for ’communication’ and communication devices– Cell phone charged in

kiosk, 1.2 USD/kWh

Demand for communication and entertainment may increase demand for electricity

= Household energy security constantly redefined to cater for new needs?

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Diversification of energy use for energy security

New demands may extend the boundaries of ’household energy security’

A diverse energy regime can be resilient to supply shocks, but also to change

Use of technological interventions to improve energy use might only take place when the situation is ”suitable”