Pre-Conference Workshop on Clean Cooking Fuels31st IAEE International Conference
Istanbul, 16-17 June 2008
Clean Gas Delivery for Poverty Reduction
Andrew YagerUnited Nations
22
Presentation Outline
Context for sustainable energy• Energy access• Millennium Development Goals
LP Gas Rural Energy Challenge• Barriers to access• Solutions (income, investment)
Alternative Gas Supply Options LP Gas Investment Facility Concluding remarks
33
Context
Sustainable energy supply is a pre-condition for economic and social development and achievement of the Millennium Development Goals (MDGs)
Investment capital required for business development (both public and private)
Capacity building for local energy service delivery (policy makers, entrepreneurs, lenders, consumers)
44
Rural Energy: Traditional Fuels
55
Access to Sustainable Energy Services
Support energy activities that reduce poverty
Promote rural energy services to support growth and equity
Promote clean energy technologies Increase access to investment
financing
66
Sustainable Energy Link to the MDGs
No specific MDG on energy However, energy is key for meeting
basic human needs• Domestic uses (heating, cooking)• Productive purposes (brick and ceramics
firing, metal working, fish smoking)• Reducing drudgery (water pumping,
grinding, milling)• Social services (health care, education)
77
Fuels for Cooking
Respiratory disease from cooking on
traditional fuels kills nearly 5,000 people
daily world-wide
88
Energy Poverty: Annual Deaths
Source: World Energy Outlook 2006 (OECD/IEA)
2.8
1.6
1.2 1.3
0
1
2
3
Malaria Smoke frombiomass
Tuberculosis HIV/AIDS
milli
ons
99
There is a need to provide clean modern affordable energy services to reduce poverty.
1010
LP Gas Rural Energy Challenge Public private partnership
UN Department of Economic and Social Affairs (DESA) United Nations Development Programme (UNDP) World Liquefied Petroleum Gas Association (WLPGA)
Designed to create viable and sustainable markets for LP Gas delivery and consumption
Directly targets rural and peri-urban areas with the objective of expanding access to cleaner LP Gas
thereby contributing to sustainable energy solutions that can improve people’s lives in developing countries and achieve the MDGs
1111
Barriers to LP Gas Market Development
Lack of confidence for private sector investment (business development, policy advocacy)
Affordability (need cash) Availability (need roads and other
infrastructure such as electricity) Lack of consumer awareness (e.g.
fear of accidents)
1212
Achievements
Public private partnership established
Access to governments enables dialogue (national consultations)
Technical, socio-economic, environmental and energy access issues addressed successfully
1313
Kenya case study
Policy framework that encourages and supports investment in energy services (stability, confidence, risk)
Subsidies (government provides seed capital and guarantees for micro-finance institutions)
Tax holiday (20% VAT removed) Standards for equipment
1414
Turkey case study Upper middle income country Medium level HDI (MDG health and education are
least achieved) Need income generating activities to sustain
village life• Tree planting• Wood processing• Handicrafts• Agriculture, animal husbandry and products• Energy efficiency in buildings
Need long-term rural development strategy to modernize rural energy supply
1515
Alternative Gas Supply Options in Africa
Exploitable gaseous resources available in Africa: Small oil and gas deposits (e.g. Mozambique,
Namibia, South Africa, Rwanda, Ethiopia, Somalia, Cameroon, Congo (Brazzaville), Cote d’Ivoire, Ghana, Senegal, among others)
Dissolved methane gas in Lake Kivu (DRC, Rwanda); Lakes Nyos and Monoun (Cameroon).
Biogenic gases formed in swamps and marshes (Botswana, Niger, DRC)
Landfill gas (various countries) Gas Flaring reduction at oil and gas production
facilities (Nigeria, Angola, others) Biogas from animal, agricultural and human waste
1616
LP Gas Investment Facility The Facility is intended to provide pre-investment
capital:• To give entrepreneurs an opportunity to develop their
service offering • Aimed at reducing the risks associated with the
establishment of energy service delivery businesses. The donor community recognizes that working in
poor and low population density areas makes it more difficult for private entrepreneurs to sustain a profitable operation.• Therefore the United Nations partners will engage in
activities that remove barriers and enhance investor confidence by reducing risk.
1717
LP Gas Investment Facility (inputs)
Provide seed capital for activities that enable clean gas supply and distribution networks to develop. Specifically:• Support business plan preparation• Support local capacity development to
provide energy services• Support capacity building aimed at
sustainable market development
1818
LP Gas Investment Facility
The projects supported by the Facility will integrate:
1) the private sector’s contribution in service delivery and investment financing with
2) governments facilitating the enabling environment for creating new relationships and policy dialogue and
3) local NGOs providing the critical support function at the project implementation level.
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LP Gas Investment Facility
As the partnership succeeds• communities and individuals benefit
through increased access to clean fuel and energy services
• governments are able to fulfill social and economic development objectives, and
• private enterprises expand business opportunities,
resulting in a triple-win situation that is the aim of the facility.
2020
Concluding remarks
Clean affordable energy supply is needed to achieve the MDGs
There are many indigenous sources of energy
Local capacity exists to deliver energy services
Both public and private sector resources are required to develop the alternatives
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Thank you!
Andrew [email protected]
Division for Sustainable Developmenthttp://www.un.org/esa/sustdev/index.html
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