Development and Energy in Africa (DEA) project A case for Botswana

Peter P. ZhouEECG Consultants Pty Ltd

Tel +267-3910127

OUTLINEPURPOSECHALLENGESENERGY OVERVIEW & POLICY OBJECTIVESSTAKEHOLDER VIEWSMDGS LINKAGESPAST INTERVENTIONSLESSONS

PURPOSEINITIATE TODAY’S DISCUSSION ON SOME DEVELOPMENT IMPERATIVESINITIATE DEBATE ON IMPACTS OF ENERGY ON DEVELOPMENTHOW TO REPRESENT IMPACTSHOW TO LINK WITH DEVELOPMENT OBJECTIVESPRESENTS SOME LESSONS

DEVELOPMENT CHALLENGES

Economic diversification from the diamond economyHow to grow economy 8% and aboveReducing high employment rates (24%)Diversion of Govt resources to HIV/AIDSHow to reduce poverty- as reflected by PDL

Fig 2.1 Primary and Net Energy Suply in Botswana

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coal fuelw ood solar electricity petroleum

Energy carrier

% c

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trib

uti

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Primary Supply

Net Supply

Fig 2.2 Final Energy Consumption by Sector

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Sectors

% c

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total Energy Consumption

commercial energy consumption

Energy policy linkage with development

Vision 2016(1997)

NDP7(1991-1997

NDP8(97/98-2002/03)

NDP9(2003/04-2008/09)

BEMP 1996(1985-1996)

BEMP 2004

Specific energy objectivesoIncrease access to electricity and make it more affordable

oEnsure adequate supplies of fuelwood througho sustainable fuelwood management practicesoappropriate combustion equipment; ocommunity management of natural resources)

oBeneficiate coal and make it accessible and affordable

oEnsure the availability of appropriate energy sources and promote rational least cost choices

oEnsure adequate and affordable supplies of paraffin and LPG.

Stakeholder viewsAlternative energy sources to alleviate depletion of fuelwoodModern energy as a transformation of backwardnessFacilitating service delivery in rural areas- schools, police, MLG offices etcSaving lives in rural clinics-uninterruptable energy sources

Stakeholder views contdSustainable capacity- e.g. for water pumping (diesel expensive)Increase economies of scale by grid compared to dieselConcerns of turbulent fuel prices and high electricity imports recognized

Box 2 Millennium Development Goals (MDG) with direct energy implications and target date of 2015 - Source DFID, 2002

To halve population with extreme poverty and hungerTo reduce hunger and improve access to safe drinking waterTo reduce child and maternal mortality and to reduce diseasesTo achieve universal primary education and to promote gender equality and empowerment of women Environmental sustainabilityCombat HIV/AIDS Develop a global partnership for development (same source)

MDG Opportunity

poverty and hunger Cooking energy/productive energy

safe drinking water Water boiling/pumping

child and maternal mortality and to reduce diseases

Equipped health centres

education and to promote gender equality and empowerment of women

Reduce time spent on household chores- cooking, water. Fuelwood fetchingAvail attractive facilities in schools- lighting

Environmental sustainability Indoor air pollution and depletion of woody biomass

Combat HIV/AIDS ICT for awareness campaign

global partnership for development

Linking up with NEPAD, SADC, WSSD

BOTSWANA EFFORTBotswana has made significant strides

rural electrification, 4% in 1996 to 28% 2003 providing telecommunications facilities, 97%increasing access to safe drinking water, access to health centres 88% within 15kmand in education>90% primary;70% JC; 51% SS

Development sector Possible Indicator Development aspect

Energy Additional access to energy type resulting from project

Clean and productive use

Water Additional supplied Safe drinking/productive use

Health No reached or treated Improved health

Agriculture Improved yield Food security/productive nation

Telecommunications No connected/reached Informed decisions

Education No benefited e.g. from class lighting

Better education quality and educated nation

Wild Life/Tourism New sites opened and No. Attracted to sites

Community/national income improved

Forestry Quantity of products e.g. poles, fuelwood

Avoided deforestationAdded building and energy resource

Project/intervention Type of Intervention Achievements Development Impact

Rural Electrification Collective Scheme 1997-2001

Financing Policy Many households connected to grid

Infrastructure developmentModern energy propagation

Botswana National PV Rural Electrification Programme (NPVREP)

Financing policy for PV electrification

309 systems sold (43kWp) for lighting, appliances

Bars extended operation chicken farmingHome quality life

JICA Master Plan Pilot project with fee for service financing

114 SHS systems and 41 battery beneficiaries

Quality home life

Motshegaletau Central PV

Pilot Mini grid on fee for service 9h/hs, clinic a primary school, a bar connected

Options for rural electrification

Suntainers Mini-grids for remote Govt Institutions

3 suntainers distributed to MLG institutions

Rural transformation

Solar Lantern and battery Lease Scheme

New PV tech on high purchase/rent to own

109 lanterns distributedCommunity organizationTraining for serviceRent to own financial mechanism tested

Improved quality of light, health, business opportunities in light.

Alternative Energy Use Fuelwood substitution policy in govt

Clean coal and reduced fuelwood useLarger LPG market 4%-40%

Improved coal and LPG markets

Community Woodlots Community afforestation projects

Some wood products e.g. for poles

Additional woody resources and environmental preservation

LPG Propagation Entrepreneur development Many LPG distributors Income generating and create employment

Energy Conservation in households

Awareness building 20% energy saved Cost savings going to other required goods and services

lessonsSubsidy necessary for energy interventionsPoor low purchasing power to be matchedWho really benefits from interventions- is it the poorAre these schemes the right ones for the poor & yet the price should never be too highScope for community developmentPast projects incremental effect- will get there

UNEP FI Bulletin “As microfinance has shown that the poor are bankable, micro insurance is showing that they are insurable as well."