NewEnergyNews: TODAY’S STUDY: NEW ENERGY CAN BE FOR EVERYBODY/

NewEnergyNews

Gleanings from the web and the world, condensed for convenience, illustrated for enlightenment, arranged for impact...

The challenge now: To make every day Earth Day.

YESTERDAY

THINGS-TO-THINK-ABOUT WEDNESDAY, August 23:

  • TTTA Wednesday-ORIGINAL REPORTING: The IRA And The New Energy Boom
  • TTTA Wednesday-ORIGINAL REPORTING: The IRA And the EV Revolution
  • THE DAY BEFORE

  • Weekend Video: Coming Ocean Current Collapse Could Up Climate Crisis
  • Weekend Video: Impacts Of The Atlantic Meridional Overturning Current Collapse
  • Weekend Video: More Facts On The AMOC
  • THE DAY BEFORE THE DAY BEFORE

    WEEKEND VIDEOS, July 15-16:

  • Weekend Video: The Truth About China And The Climate Crisis
  • Weekend Video: Florida Insurance At The Climate Crisis Storm’s Eye
  • Weekend Video: The 9-1-1 On Rooftop Solar
  • THE DAY BEFORE THAT

    WEEKEND VIDEOS, July 8-9:

  • Weekend Video: Bill Nye Science Guy On The Climate Crisis
  • Weekend Video: The Changes Causing The Crisis
  • Weekend Video: A “Massive Global Solar Boom” Now
  • THE LAST DAY UP HERE

    WEEKEND VIDEOS, July 1-2:

  • The Global New Energy Boom Accelerates
  • Ukraine Faces The Climate Crisis While Fighting To Survive
  • Texas Heat And Politics Of Denial
  • --------------------------

    --------------------------

    Founding Editor Herman K. Trabish

    --------------------------

    --------------------------

    WEEKEND VIDEOS, June 17-18

  • Fixing The Power System
  • The Energy Storage Solution
  • New Energy Equity With Community Solar
  • Weekend Video: The Way Wind Can Help Win Wars
  • Weekend Video: New Support For Hydropower
  • Some details about NewEnergyNews and the man behind the curtain: Herman K. Trabish, Agua Dulce, CA., Doctor with my hands, Writer with my head, Student of New Energy and Human Experience with my heart

    email: herman@NewEnergyNews.net

    -------------------

    -------------------

      A tip of the NewEnergyNews cap to Phillip Garcia for crucial assistance in the design implementation of this site. Thanks, Phillip.

    -------------------

    Pay a visit to the HARRY BOYKOFF page at Basketball Reference, sponsored by NewEnergyNews and Oil In Their Blood.

  • ---------------
  • WEEKEND VIDEOS, August 24-26:
  • Happy One-Year Birthday, Inflation Reduction Act
  • The Virtual Power Plant Boom, Part 1
  • The Virtual Power Plant Boom, Part 2

    Monday, October 24, 2011

    TODAY’S STUDY: NEW ENERGY CAN BE FOR EVERYBODY

    Energy For All – Financing access for the poor; Special early excerpt of the World Energy Outlook 2011
    October 2011 (International Energy Agency)

    Summary

    As energy is the source of all life, so modern energy can be the source of a better life for all. The International Energy Agency’s World Energy Outlook (WEO) has focused attention on modern energy access for a decade, providing the international community with quantitative, objective analysis. This report, a special early excerpt of World Energy Outlook 2011, tackles the critical issue of financing the delivery of universal modern energy access.

    Modern energy services are crucial to human well‐being and to a country’s economic development; and yet globally over 1.3 billion people are without access to electricity and 2.7 billion people are without clean cooking facilities. More than 95% of these people are either in sub‐Saharan Africa or developing Asia and 84% are in rural areas.

    In 2009, we estimate that $9.1 billion was invested globally in extending access to modern energy services. In the absence of significant new policies, we project that the investment to this end between 2010 and 2030 will average $14 billion per year, mostly devoted to new on‐grid electricity connections in urban areas. This level of investment will still leave 1.0 billion people without electricity and, despite progress, population growth means that 2.7 billion people will remain without clean cooking facilities in 2030.
    To provide universal modern energy access by 2030 annual average investment needs to average $48 billion per year, more than five‐times the level of 2009. The majority of this investment is required in sub‐Saharan Africa.

    click to enlarge

    The barriers to achieving modern energy access are surmountable, as many countries have proven. Our analysis concludes that five actions are essential to transforming the situation:

    1. Adopt a clear and consistent statement that modern energy access is a political priority and that policies and funding will be reoriented accordingly. National governments need to adopt a specific energy access target, allocate funds to its achievement and define their strategy for delivering it.

    2. Mobilise additional investment in universal access, above the $14 billion per year assumed in our central scenario, of $34 billion per year. All sources and forms of investment have their part to play, reflecting the varying risks and returns of particular solutions. All need to grow. The sum is large, but is equivalent to around 3% of global investment in energy infrastructure over the period to 2030.

    3. Private sector investment needs to grow the most, but significant barriers must first be overcome. National governments need to adopt strong governance and regulatory frameworks and invest in internal capacity building. The public sector, including multilateral and bilateral institutions, needs to use its tools to leverage greater private sector investment where the commercial case is marginal and encourage the development of replicable business models. When used, public subsidies must be well targeted to reach the poorest.

    click to enlarge

    4. Concentrate an important part of multilateral and bilateral direct funding on those difficult areas of access which do not initially offer an adequate commercial return. Provision of end‐user finance is required to overcome the barrier of the initial capital cost of gaining access to modern energy services. Operating through local banks and microfinance arrangements can support the creation of local networks and the necessary capacity in energy sector activity.

    5. Make provision for the collection of robust, regular and comprehensive data to quantify the outstanding challenge and monitor progress towards its elimination.

    International concern about the issue of energy access is growing. While the United Nations Millennium Development Goals do not include specific targets in relation to access to electricity or to clean cooking facilities, the United Nations has declared 2012 to be the “International Year of Sustainable Energy for All”. The Energy for All Conference in Oslo, Norway (October 2011) and the COP17 in Durban, South Africa (December 2011) are important preliminary opportunities to establish the link between energy access, climate change and development. These issues can then be addressed at the United Nations Conference on Sustainable Development (Rio+20) in Rio de Janeiro, Brazil in June 2012. That conference will be the occasion for commitments to specific action to achieve sustainable development, including universal energy access.

    click to enlarge

    Highlights

    Modern energy services are crucial to human well‐being and to a country’s economic development; and yet over 1.3 billion people are without access to electricity and 2.7 billion people are without clean cooking facilities. More than 95% of these people are either in sub‐Saharan Africa or developing Asia and 84% are in rural areas.

    In 2009, we estimate that $9.1 billion was invested globally in extending access to modern energy services, supplying 20 million more people with electricity access and 7 million people with advanced biomass cookstoves. In the New Policies Scenario, our central scenario, $296 billion is invested in energy access between 2010 and 2030 – an average of $14 billion per year, 56% higher than the level in 2009. But, this is not nearly enough: it still leaves 1.0 billion people without electricity (more than 60% are in sub‐Saharan Africa) and, despite progress, population growth means that 2.7 billion people will remain without clean cooking facilities in 2030. To provide universal modern energy access by 2030 cumulative investment of $1 trillion is required – an average of $48 billion per year, more than five‐times the level in 2009.

    click to enlarge

    The $9.1 billion invested in extending energy access in 2009 was sourced from multilateral organisations (34%), domestic government finance (30%), private investors (22%) and bilateral aid (14%). To provide the $48 billion per year required for universal access, we estimate that around $18 billion per year is needed from multilateral and bilateral development sources, $15 billion per year from the governments of developing countries and $15 billion per year from the broad range of actors that form the private sector.

    Private sector investment needs to grow the most, but significant barriers must first be overcome. Public authorities must provide a supportive investment climate, such as by implementing strong governance and regulatory reforms. The public sector, including donors, needs also to use its tools to leverage private sector investment where the commercial case is marginal. At present, energy access funding tends to be directed primarily toward large‐scale electricity infrastructure. This does not always reach the poorest households. Access to funding at a local level is essential to support initiatives that cater effectively for local needs, building local financial and technical capacity and stimulating sectoral development.

    Achieving universal access by 2030 would increase global electricity generation by 2.5%. Demand for fossil fuels would grow by 0.8% and CO2 emissions go up by 0.7%, both figures being trivial in relation to concerns about energy security or climate change. The prize would be a major contribution to social and economic development and help to avoid 1.5 million premature deaths per year.

    click to enlarge

    Introduction

    Energy is a critical enabler. Every advanced economy has required secure access to modern sources of energy to underpin its development and growing prosperity. While many developed countries may be focused on domestic energy security or decarbonising their energy mix, many other countries are still seeking to secure enough energy to meet basic human needs. In developing countries, access to affordable and reliable energy services is fundamental to reducing poverty and improving health, increasing productivity, enhancing competitiveness and promoting economic growth. Despite the importance of these matters, billions of people continue to be without basic modern energy services, lacking reliable access to either electricity or clean cooking facilities. This situation is expected to change only a little by 2030 unless more vigorous action is taken.

    Developing countries that import oil are today facing prices in excess of $100 a barrel when, at a comparable stage of economic development, many OECD countries faced an average oil price of around $22 a barrel (in 2010 dollars). In little over a decade, the bill of oil importing less developed countries1 has quadrupled to hit an estimated $100 billion in 2011, or 5.5% of their gross domestic product (GDP) (Figure 1). Oil import bills in sub‐Saharan Africa increased by $2.2 billion in 2010, more than one‐third higher than the increase in Official Development Assistance (ODA)2 over the year. In contrast, oil exporters in sub‐Saharan Africa, such as Nigeria and Angola, are benefitting from the oil price boom and tackling energy poverty is, financially at least, within their means. We estimate that the capital cost of providing modern energy services to all deprived households in the ten largest oil and gas exporting countries of sub‐Saharan Africa would be around $30 billion, equivalent to around 0.7% of those governments’ cumulative take from oil and gas exports.

    click to enlarge

    International concern about the issue of energy access is growing. While the United Nations Millennium Development Goals4 (MDGs) do not include specific targets in relation to access to electricity or to clean cooking facilities, the United Nations has declared 2012 to be the “International Year of Sustainable Energy for All”. Other strategic platforms to discuss the link between energy access, climate change and development include the “Energy for All Conference” in Oslo, Norway in October 2011, and the COP17 in Durban, South Africa in December 2011. These issues are also expected to be addressed at the United Nations Conference on Sustainable Development (UNCSD) in Rio de Janeiro, Brazil in June 2012. That conference will aim to secure renewed political commitment to sustainable development, to assess progress to date and to address new and emerging challenges. It will bring to centre‐stage in the international debate the need to reconcile environment, development and poverty eradication issues such as energy access.

    The International Energy Agency’s (IEA) World Energy Outlook (WEO) has focused attention on modern energy access for a decade, providing the international community with quantitative, objective analysis. This year our analysis tackles the critical issue of financing the delivery of universal modern energy access…The report begins by providing updated estimates of the number of people lacking access to electricity and clean cooking facilities, by country. It offers, to the best of our knowledge, for the first time in energy literature, an estimate of the total amount of investment taking place globally to provide access to modern energy services and provides details on the sources of financing. The report then examines what level of modern energy access might be achieved by 2030, in relation to the projections in the New Policies Scenario, our central scenario, and the level of investment involved (the New Policies Scenario takes account of both existing government policies and cautious implementation of declared policy intentions)…The time horizon over which this analysis is based is the period 2009 to 2030. This period has been adopted to be consistent with the key goal proposed by the United Nations Secretary‐General of ensuring universal energy access by 2030 (AGECC, 2010).

    click to enlarge

    Since the level of projected investment in the New Policies Scenario is not nearly enough to achieve universal access to modern energy services by 2030, we then estimate the level of additional investment that would be required to meet the goal of universal access to electricity and clean cooking facilities by 2030 – as defined in our Energy for All Case…The report then examines the main sources of financing, and the types of financing instruments that appear to be the most in need of scaling‐up in order to achieve the Energy for All Case (Figure 2). This is derived from a bottom‐up analysis of the most likely technology solutions in each region, given resource availability, and government policies and measures. Throughout, we have drawn on experience from existing programmes using different financing and business models to provide modern energy access.

    click to enlarge

    Implications for policy

    Modern energy services are crucial to economic and social development; yet escalating global energy prices are pushing this fundamental building block further out of reach of those most in need. Even with the projected level of investment in modern energy access of $14 billion per year in the New Policies Scenario, the absolute numbers of people without access to modern energy in 2030 will be scarcely changed (though the proportion of the global population so deprived will have fallen). In sub‐Saharan Africa, the numbers without modern energy access will have actually increased. Neither the policies adopted today nor the plausible new policies allowed for in the New Policies Scenario will do nearly enough to achieve universal access to modern energy services by 2030.

    The barriers to achieving modern energy access are surmountable, as many countries have proven. What actions does this analysis suggest that are essential to transform the situation? There are five:

    click to enlarge

    1) Adopt a clear and consistent statement that modern energy access is a political priority and that policies and funding will be reoriented accordingly. National governments need to adopt a specific, staged energy access target, allocate funds to its achievement and define their strategy, implementing measures and the monitoring arrangements to be adopted, with provision for regular public reporting.

    2) Mobilise additional investment in universal access, above the $14 billion per year assumed in the New Policies Scenario, of $34 billion per year. The sum is large, but is equivalent to around 3% of global energy infrastructure investment over the period.

    3) Draw on all sources and forms of investment finance, to reflect the varying risks and returns of the particular solutions adapted to the differing circumstances of those without access to modern energy. To realise the considerable potential for stepping up the proportional involvement of the private sector, national governments need to adopt strong governance and regulatory frameworks and invest in internal capacity building. Multilateral and bilateral institutions need to use their funds, where possible, to leverage greater private sector involvement and encourage the development of replicable business models.

    click to enlarge

    4) Concentrate an important part of multilateral and bilateral direct funding on those difficult areas of access which do not initially offer an adequate commercial return. Provision of end‐user finance is required to overcome the barrier of the initial capital cost of gaining access to modern energy services. Operating through local banks and microfinance arrangements, directly or through guarantees, can support the creation of local networks and the necessary capacity in energy sector activity.

    5) In many ways, providing energy access is an objective well suited to development frameworks such as output‐based financing, but accurate data needs to be collected to measure progress. While the World Energy Outlook has sought to shed light in this area, it is important that energy access programmes and projects make provision for the collection of robust, regular and comprehensive data to quantify the outstanding challenge and monitor progress towards its elimination.

    0 Comments:

    Post a Comment

    << Home