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Village Level Energy Access in East Africa Denyse Umubyeye

Kigali | Nov-14 | Village Energy Access in East Africa

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Page 1: Kigali | Nov-14 | Village Energy Access in East Africa

Village Level Energy Access

in East Africa

Denyse Umubyeye

Page 2: Kigali | Nov-14 | Village Energy Access in East Africa

East Africa

Background

Page 3: Kigali | Nov-14 | Village 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: Kigali | Nov-14 | Village 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: Kigali | Nov-14 | Village Energy Access in East Africa

East Africa Energy

Supply Side

Page 6: Kigali | Nov-14 | Village Energy Access in East Africa

East Africa Installed Energy Capacity (MW)

0

500

1000

1500

2000

2500

Kenya Tanzania Uganda Rwanda

East Africa Installed Energy Capacity (MW)

Page 7: Kigali | Nov-14 | Village Energy Access in East Africa

hydropower 59%

geothermal 39%

cogeneration 2%

wind0%Kenya Energy Mix

Hydro58%

Thermal42%

Tanzania Energy Mix

East African Country’s Energy Mix

Hydroelectric59%

Thermal41%

Solar0%

Rwanda Energy Mix

Hydroelectric65%

Thermal32%

Biomass (bagasse)

3%

Uganda Energy Mix

Page 8: Kigali | Nov-14 | Village Energy Access in East Africa

East Africa Potential Energy Capacity (MW)

0

2000

4000

6000

8000

10000

12000

Kenya Energy Potential (MW)

0

500

1000

1500

2000

2500

3000

3500

4000

Hydro Geothermal Biomass Wind Solar Installed

Tanzania Energy Potential (MW)

0

500

1000

1500

2000

2500

3000

3500

Hydro Geothermal Biomass Solar Installed

Uganda Energy Potential (MW)

0

100

200

300

400

500

600

Hydro Geothermal Biogas Installed

Rwanda Energy Potential (MW)

Page 9: Kigali | Nov-14 | Village 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: Kigali | Nov-14 | Village Energy Access in East Africa

East Africa

Rural Energy Use

Page 11: Kigali | Nov-14 | Village 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: Kigali | Nov-14 | Village 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: Kigali | Nov-14 | Village 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: Kigali | Nov-14 | Village 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: Kigali | Nov-14 | Village 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: Kigali | Nov-14 | Village 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: Kigali | Nov-14 | Village Energy Access in East Africa

East Africa

Energy Policies

Page 18: Kigali | Nov-14 | Village 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: Kigali | Nov-14 | Village 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: Kigali | Nov-14 | Village 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: Kigali | Nov-14 | Village 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: Kigali | Nov-14 | Village 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: Kigali | Nov-14 | Village 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: Kigali | Nov-14 | Village Energy Access in East Africa

East Africa

Rural Energy Access

Page 25: Kigali | Nov-14 | Village 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: Kigali | Nov-14 | Village 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: Kigali | Nov-14 | Village 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: Kigali | Nov-14 | Village 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: Kigali | Nov-14 | Village 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: Kigali | Nov-14 | Village Energy Access in East Africa

East Africa

Rural Energy

Conclusions and

Recommendations

Page 31: Kigali | Nov-14 | Village 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: Kigali | Nov-14 | Village 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.